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.

Cargo Talk - - Guest Column - (The views ex­pressed are solely of the au­thor. The pub­li­ca­tion may or may not sub­scribe to the same.)

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.

Ramesh Mami­dala CEO, Çelebi Delhi Cargo Ter­mi­nal Man­age­ment In­dia & DDP Game Changer 2016

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