Govt likely to come out with logistics cost estimate by Sept: DPIIT Official

Govt likely to come out with logistics cost estimate by Sept: DPIIT Official

A senior DPIIT executive said on Friday that the government is currently working on a structure to measure logistics costs in the country and expects to have a credible estimate by September.

At the moment, the government is relying on estimates that place India's logistics costs at around 13-14 percent of the nation's total GDP (gross domestic product).

Sumita Dawra, Special Secretary in the Ministry for Promotion of Industry and Internal Trade (DPIIT), stated that the government is preparing its logistics cost structure.

The framework would incorporate parts of this cost as well as methods for measuring it. So, with the assistance of our technical partner, we are nearly finished with our framework.

But after that, we have to compute, and I believe we will have actual transportation expenses in the country by September.

"We will define what the components are, and we will have our personal estimates," she said at the CII's trade facilitation conclave.

Logistics costs are important in enabling commerce and increasing businesses' competitiveness.

The department held a workshop on the logistics expenses structure in March. So a task force was formed to develop a framework for determining the cost in the nation.

The task group comprises representatives from Niti Aayog, the Ministry of Statistics and Programme Implementation (MOSPI), the National Council of Applied Economic Research (NCAER), educational specialists, and other stakeholders.

The government has implemented a national transportation policy as well as the PM Gati Shakti project to increase industrial competitiveness and reduce logistics costs.

Sanjay Budhia, Chairman of the CII National Committee on EXIM as well as the managing director of Patton Group, stated at the conclave that the continued focus on creating an electronic trading ecosystem through measures such as faceless assessment, risk administration system and direct port delivery has begun to show results on the ground level.

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