Separate unit to deal with logistics
The Commerce Ministry is working on a proposal to set up a separate logistics unit to deal with the issues, including rising costs, that are impacting global competitiveness of exporters.
The Commerce Ministry is considering a separate unit for logistics. There is no single department or ministry at present to look at all the aspects that are related to logistics covering various modes of shipment such as sea, roads and railways.
An umbrella body would help coordinate all aspects of logistics, which is currently managed by different departments
Exporters also have demanded for a specific department to deal with the logistics issues. They are undertaking a study to look at issues such as shortcomings in logistics and also ways to address the same. An umbrella body would help coordinate all aspects of logistics, which is currently managed by different departments.
To increase the logistics competitiveness of exporters, the Commerce Ministry has also suggested to the Railways Ministry that it needs to clearly distinguish between consignments for exports, imports and the general category in terms of freight rates. Logistics costs of exports are very high in India and due to this, Indian goods are less competitive in the global markets. In India, the container transport is heavily inclined in favour of roads due to high freight rates of railway, unpredictable and unreliable scheduling of freight trains, and poor lastmile connectivity. A strategy paper released in 2010 by the Commerce Ministry had emphasised upon the need to invest billions of dollars in improving infrastructure to boost exports. It had asked the government to invest to modernise roads, ports, railways, airports, power and customs stations. During the April-February period of the current fiscal, exports grew by 2.52 per cent to US $245.4 billion. India is aiming to increase its share in global trade to 3.5 per cent by 2020 from the two per cent at present. Moreover, increasing trade helps create big employment opportunities and boosts economic growth.