Cut logistics cost to 9% of GDP, Goyal tells States

4 min read
  1. Commerce and Railways Minister has asked the various transport Ministries to find ways to reduce logistics costs in the country to 9% of GDP by 2022 from the current 14%.
  2. Commerce minister also reviewed the draft National Logistics Policy and the proposed action plan for implementation of the policy.
  3. The draft policy has been prepared by the Department of Logistics, Ministry of Commerce and Industry in consultation with the Ministries of Railways, Road Transport and Highways, Shipping and Civil Aviation.
  4. The aim of the policy is to reduce the logistics cost from the present 14% of GDP to less than 10% by 2022.
  5. India’s logistics sector is highly defragmented and complex with involvement of more than 20 government agencies,37 export promotion councils, 200 shipping agencies and 36 logistic services.
  6. The Indian logistics sector provides livelihood to more than 22 million people and improving the sector will facilitate 10 % decrease in indirect logistics cost leading to the growth of 5-8% in exports.
  7. The worth of Indian logistics market would be around USD 215 billion in the next two years compared to about USD 160 billion currently.

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