New division for logistics development

There is a need for greater internal integration of systems in India and improvement in logistics efficiency for achieving 8.5% GDP growth, said Dr. Junaid Kamal Ahmad, India Country Director, World Bank Group.

“The whole area of connectivity and logistics is necessary for India to move to its next growth path,” he said at the Global Logistics Summit’ on 5 April 2018.

“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,” said Junaid.

The global trading system needs to remain open to ensure growth, poverty reduction and shared prosperity, said Junaid in a follow up to Commerce and Industry Minister, Suresh Prabhu, on logistics.

Speaking at the summit, Prabhu has urged all the stakeholders to churn new ideas to enhance India’s logistics efficiency.

“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 Prabhu.

“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,” said the minister.

The summit was organised by the Federation of Indian Chamber of Commerce and Industry (FICCI), Commerce Commerce and the World Bank Group.

Rita Teaotia, Commerce Ministry Secretary, elaborated on the 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.

Teaotia 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 and rolling out of the integrated logistics portal shortly.

Bibek Debroy, Member, NITI Aayog and Chairman, Economic Advisory Council to the Prime Minister, emphasised the need to have complete Goods and Services Tax (GST) in the country.

Debroy said, “procedural improvements will not be completed and accomplished unless there is a full-fledged GST that supplants and 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.

FICCI recognises the entire issue of trade facilitation and logistics being key to making Indian economy globally competitive, assured its Secretary General, Dr. Sanjaya Baru.

“There are lot of last mile issues in terms of connectivity, customs facilitation and we recognise the importance of the subject.

“FICCI will facilitate and provide an opportunity to all stakeholders to interact with the government,” he added. fii-news.com