New Delhi, Feb 12 (IECurrentAffairs) Commerce and industry Minister Suresh Prabhu said on Tuesday that India has improved its ranking in the World Bank’s Logistics Performance Index and to improve it further ports and shipping industry can play a major role.
”Although India has 7,600 km of coast line our ports and shipping industry can play a major role in improvement of the logistics sector,” he said Mr Prabhu in his delivered keynote address at a workshop organised by the Logistics Department of the Ministry of Commerce and Industry here.
India has improved its ranking in the World Bank’s Logistics Performance Index but it needs to urgently improve further so that the country can be a part of international standards, reduce costs, join global value chains and increase trade, he said.
”India has improved its ranking in the World Bank’s Logistics Performance Index and jumped from 54th in 2014 to 35th in 2016. But India need to urgently improve further so that we can be a part of international standards, reduce costs, join global value chains and increase trade,” he said.
The Minister informed participants that the Commerce Ministry has developed a logistics portal which is technology driven and will create an eco-system for achieving highest efficiency in all aspects of India’s logistics.
The portal will ensure ease of trading in the international and domestic markets. It will link all the stakeholders of EXIM, domestic trade and movement and all trade activities on a single platform.
India’s logistics sector is highly fragmented and the aim is to reduce the logistics cost from the present 14 per cent of GDP to less than 10 per cent by 2022.
India’s logistics sector is very complex with more than 20 government agencies, 40 partnering government agencies (PGAs), 37 export promotion councils, 500 certifications, 10,000 commodities, 160 billion market size.
It also involves 12 million employment base, 200 shipping agencies, 36 logistic services, 129 ICDs, 168 CFSs, 50 IT ecosystems and banks & insurance agencies. Further, 81 authorities and 500 certificates are required for EXIM.
Mr Prabhu further said that logistics sector has the capacity to generate massive employment in the country and it is expected that 28 million workers will be required in this sector in the near future in order to deliver competent and quality service.
”Once the portal begins functioning it will put in place an institutional mechanism which will work in a concerted manner for delivering vertical integration to the logistics sector in the country. Commerce Ministry will support all stakeholders in bridging infrastructure gaps and provide legislative support whenever required,” he said.
Mr Prabhu exhorted all global players to get involved in India’s logistics sector, adding that this alone will be a game changer and put India firmly on the path of becoming a USD 5 trillion economy.