Indian logistics turns over a new leaf
Ramesh Mamidala, CEO, Çelebi Delhi Cargo Terminal Management India, shares his view on the Indian logistics industry as per present government compliance rules vis-à-vis other countries Çelebi operates in.
The government has set a target to reduce the logistics cost in India from 14 per cent of GDP to less than 10 per cent of it, by 2022
As is true to other countries, the necessary registration and compliance certifications need to be obtained from the government to start a business in the Indian logistics industry. In India, registration with International Air Transport
Association (IATA) and Air Cargo Agent Association of India (ACAAI) are a must for freight forwarders. Other important registrations in India include Directorate General of Foreign Trade (DGFT) registration, registration with the Income Tax Department, Registrar of Companies, and related government departments.
To promote growth in logistics, it is necessary for the government and other regulatory bodies in the country to provide an environment that creates value propositions in logistics services. As far as the air cargo industry is concerned, the Indian government has, over recent years, made significant improvements
in streamlining efficiencies in this industry. Single-window processing introduced by customs in 2016 was a great success and is further being improvised on to bring in some more changes. The officials in customs and other regulatory departments are being open-minded, willing to listen, willing to adopt new ideas and more importantly, becoming technology-oriented.
A positive initiative by the government has been the formation of Air Cargo Logistics Promotion Board to carry out various development activities in the sector in a structured manner, focusing on increased allocation of space for cargo in Greenfield airports, promoting global good practices like Free-Trade Warehousing Zones (FTWZ), air freight stations, bonded trucking, dedicated cargo airports, simplification of customs procedures, etc. It has also commenced 24x7 customs operations at several airports.
As per the National Civil Aviation Policy 2016, there has been immense focus on promoting regional connectivity. The aim of the government is to provide an ecosystem for the harmonised growth of various aviation subsectors, one of which is cargo, providing safe, secure, affordable, and sustainable air travel to passengers and for air transportation of cargo with access to various parts of India and the world.
Owing to the interplay of infrastructure, technology and new service providers, this industry is expected to undergo a rapid evolution and growth. The government has also set a target to reduce the logistics cost in India from the present 14 per cent of GDP to less than 10 per cent of it, by 2022.
We also foresee huge growth in soft infrastructure like education, training, and policy framework. Thus, the current Indian logistics industry, which provides employment to more than 22 million people, will significantly increase this number in the coming years.