What is India's strategy to reduce Logistics Costs ... #logisticscosts #logistics #india

What is India's strategy to reduce Logistics Costs? … #logisticscosts #logistics #india

India currently faces relatively high logistics costs, which amount to around 14% of its GDP. Comparatively, in other countries, these costs range from six to eight percent of GDP. Recognizing the high burden on the economy, the Indian government has devised a comprehensive plan to reduce logistics costs to less than 10% of GDP. This strategy is built on three main pillars:

1. National Infrastructure Pipeline

A massive infrastructure rollout is slated to take place, with a significant investment of ₹111 lakh crore by March 2025. This ambitious plan aims to develop and upgrade critical infrastructure across the country, facilitating smoother and more efficient logistics operations.

Under this initiative, all projects undertaken by various government departments will be mapped on a single platform. The objective is to enhance coordination and prevent overlapping efforts, thereby streamlining the logistics process across different sectors.

3. National Logistics Policy

The National Logistics Policy aims to bring firms associated with logistics under a single platform. This policy seeks to standardize procedures and ensure that the logistics sector operates in a more unified and efficient manner.

By prioritizing these three pillars, the Indian government aims to transform the country's logistics landscape, making it more cost-effective and efficient, ultimately boosting economic growth.

Keywords

Logistics costs
National Infrastructure Pipeline
PM Gati Shakti
National Logistics Policy
India GDP
Investment
Infrastructure
Government initiatives

FAQ

Q: What is the current percentage of logistics costs in India's GDP? A: Logistics costs in India currently amount to around 14% of GDP.

Q: How do India's logistics costs compare to those in other countries? A: In other countries, logistics costs typically range between six to eight percent of GDP.

Q: What is the target percentage for India's logistics costs as planned by the government? A: The government aims to reduce logistics costs to less than 10% of GDP.

Q: What is the National Infrastructure Pipeline? A: It is a plan to invest ₹111 lakh crore by March 2025 to develop and upgrade infrastructure, facilitating efficient logistics operations.

Q: What is the purpose of PM Gati Shakti - National Master Plan for Multi-modal Connectivity? A: The initiative aims to map all projects undertaken by various government departments on a single platform to enhance coordination and streamline logistics processes.

Q: What does the National Logistics Policy aim to achieve? A: The policy aims to bring firms in the logistics sector under a single platform to standardize procedures and increase efficiency.