India’s DPIIT and NCAER Team Up to Study Logistics Costs
The Department for Promotion of Industry and Internal Trade (DPIIT) and the National Council of Applied Economic Research (NCAER) have joined forces to develop a comprehensive framework for assessing logistics costs across India. This collaboration was formalized through a Memorandum of Understanding (MoU) signed in New Delhi.
Key Objectives
The MoU aims to:
- Develop a framework for assessing logistics costs within the country.
- Conduct an in-depth study to evaluate logistics costs for the year 2023-24.
- Analyze logistics cost variations across different routes, modes, products, cargo types, and service operations.
- Identify key factors influencing logistics across various sectors.
Significance
Rajesh Kumar Singh, Secretary at DPIIT, emphasized the importance of data-driven evaluations in understanding and managing logistics costs. The initiative is expected to provide valuable insights for both industry and policymakers, helping to reduce logistics costs as a percentage of GDP, in line with the National Logistics Policy launched in 2022.
Panel Discussion and Recommendations
The seminar included a panel discussion with senior government officials, industry representatives, and academia. Stakeholders suggested focusing on high-value and high-volume commodities and considering intangible and indirect logistics costs, such as delays and business establishment convenience.
Next Steps
NCAER is tasked with conducting the detailed study, with a report expected within a year. This initiative is anticipated to have significant implications for India’s logistics sector, providing a baseline estimate of aggregated logistics costs and establishing a framework for long-term cost calculations.
