Commerce Minister urges all stakeholders to enhance India's logistics efficiency
NEW DELHI, 5 April 2018: Commerce and Industry Minister, Mr. Suresh Prabhu today urged all the stakeholders to churn new ideas to enhance India's logistics efficiency. He was addressing the 'Global Logistics Summit' jointly organised by FICCI, Ministry of Commerce, Govt. of India and The World Bank Group.
"There are large number of players who play a key role in logistics and there is a need to optimise the present infrastructure available in India to achieve enhanced effectiveness in logistics. There is exponential investment happening in infrastructure and our idea is that we must at least put in 10% of the GDP into infrastructure," said Mr. Prabhu and added that 56 new airports will come up in few years' time which will enhance connectivity in the country.
A new division has been created in the commerce ministry to deal with the problems and have an integrated development of logistics in the country," he added.
Ms Rita Teaotia, Commerce Secretary, Govt. of India said there is a need to bring down India's logistics cost from 14% to at least 10%. "This is being achieved by unprecedented investment by rail, road, shipping & waterway infrastructure. The aspirations for economic growth, employment generation, manufacturing and exports are all inextricably linked with the issue of logistics and it is an essential element that has the capacity to make that quantum in progresss," She said.
The Commerce Secretary also shared steps taken by commerce ministry to enhance logistics efficiency of India such as by getting infrastructure status to key logistics activities, working on 80% Direct Port Delivery (DPD) at key ports, increased role of Risk Management System (RMS) for border clearances & rolling out of the integrated logistics portal shortly.
Emphasising the need to have complete GST in the country, Mr. Bibek Debroy, Member, NITI Aayog and Chairman, Economic Advisory Council to the Prime Minister said, "procedural improvements will not be completed and accomplished unless there is a full-fledged GST that supplants & subsumes all indirect taxes." He added that for a country as large as India, major growth impetus will come from freeing up and unclogging of trade in the country.
Dr. Junaid Kamal Ahmad, India Country Director, World Bank Group in his address asserted the need for greater internal integration of systems in India and improvement in logistics efficiency for achieving 8.5% GDP growth. "The whole area of connectivity & logistics is necessary for India to move to its next growth path. In next 5-7 years, the gains from internal integration of markets in India will produce greater welfare gains in India's integration in global market." He further added that the global trading system needs to remain open to ensure growth, poverty reduction and shared prosperity.
Dr. Sanjaya Baru, Secretary General, FICCI in his welcome address mentioned that FICCI recognises the entire issue of trade facilitation and logistics being key to making Indian economy globally competitive and said, "there are lot of last mile issues in terms of connectivity, customs facilitation and we recognise the importance of the subject and FICCI will facilitate and provide an opportunity to all stakeholders to interact with the government."
FICCI MEDIA DIVISION
Global Logistics Summit
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