(MENAFN- KNN India)
New Delhi, Jul 6 (KNN)
The Department for Promotion of industry and Internal Trade (DPIIT), Ministry of Commerce & Industry and National Council of Applied Economic Research (NCAER) have taken a significant step forward by signing a Memorandum of Understanding (MoU) in New Delhi.
This agreement focuses on developing a Framework & Assessment of Logistics Cost in India.
The MoU outlines several key deliverables. Firstly, it aims to develop a detailed framework for assessing logistics costs in the country. Secondly, it calls for a comprehensive study to assess logistics costs for the year 2023-24.
The third objective is to assess differentials in logistics costs across various parameters such as routes, modes, products, types of cargo, and service operations. Lastly, the MoU seeks to identify major determinants along with their influence on logistics in different sectors.
During the event, Rajesh Kumar Singh emphasised the importance of data-based evaluation of logistics costs. A panel discussion on this subject was also held, featuring participation from senior government officers from DPIIT and GSTN, representatives from multilateral institutes, industry experts, and academicians.
The open discussion with logistics sector stakeholders and industry associations yielded encouraging responses. Given the diverse nature of the logistics sector, it was suggested that high-value and high-volume commodities or products should be identified for this study.
Participants also recommended examining intangible and indirect elements of logistics costs, including the cost of delays. Another perspective raised was the consideration of factors affecting business establishment convenience from an investor's standpoint, as these could impact overall logistics costs.
The MoU was signed by Anil Sharma, Secretary and Operations Director of NCAER, and S K Ahirwar, Joint Secretary of DPIIT. The occasion was graced by the presence of Shri Rajesh Kumar Singh, Secretary of DPIIT.
This MoU tasks NCAER with conducting the detailed study and submitting a report within a year. The outcomes of this study are expected to have far-reaching impacts on India's logistics sector.
The initiative aligns with the National Logistics Policy (NLP) launched by the Government of India on September 17, 2022. One of the NLP's primary objectives is to reduce the percentage of logistics cost to GDP.
In line with this goal, the Logistics Division of DPIIT had previously launched a report titled "Logistics Cost in India: Assessment and Long-term Framework" in December 2023.
This report, prepared by NCAER, provided a baseline aggregated logistics cost estimate and a framework for long-term logistics cost calculation.
(KNN Bureau)
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