The government has introduced a new framework aimed at scientifically estimating India’s logistics costs, a key initiative outlined in the National Logistics Policy. For the first time, a comprehensive calculation will utilize a hybrid approach, merging secondary data with nationwide surveys, according to the Commerce and Industry Ministry.
Previously, estimates of India’s logistics costs ranged from 13-14% of GDP, often based on partial datasets or external studies, leading to unreliable figures. The newly released report, generated by the National Council of Applied Economic Research (NCAER) for the Department for Promotion of Industry and Internal Trade (DPIIT), indicates that logistics costs are approximately 7.97% of GDP.
Commerce and Industry Minister Piyush Goyal unveiled the report, which analyzes logistics expenses across various transport modes, product categories, and firm sizes. It also provides insights into freight costs per tonne-kilometre and emphasizes the importance of multi-modal transport for enhancing efficiency.
The ministry remarked that this evidence-based analysis will bolster India’s competitiveness and contribute to the nation’s vision of becoming a global logistics hub.
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