CHENNAI: The Center intends to bring down the cost of logistics to 5%- 6% of the gross domestic product (GDP), Piyush Goyal, minister for Commerce and Industry said.
Speaking at an event on Saturday, he said it will be the result of improving efficiency as well as the function of moving up the value chain. "Moving up from raw material being the important material (in exports) to having more and more value-added products, which have significant quality and technology behind them."
The value proposition of the finished product going up will also have an impact on the cost of logistics in the country, he added. The minister said the logistics costs are showing a downward trajectory, referring to the DPIIT and National Council of Applied Economic Research (NCAER) report. It states logistics cost in the country has reduced to a range of 7.8- 8.9% of the GDP in 2021-22 from 8.8% in 2012-13.
Piyush Goyal said logistics can be the centrepiece of development vision and the country should focus on skill development, capacity building, more formalisation of the logistics sector and use of technology.
Emphasizing the participation of states, he said that all states should have a logistics policy and monitoring framework in line with national policy.
He released Logistics Ease Across Different States (LEADS) 2023 in which Andhra Pradesh, Gujarat, Karnataka, and Tamil Nadu are named the achievers in coastal states. Kerala and Maharashtra are listed as fast movers, while Goa, Odisha, and West Bengal are in the aspiring category among coastal states. Haryana, Punjab, Telangana, and Uttar Pradesh are listed as achievers in the landlocked group.
The report also notes improvement in stakeholder satisfaction regarding ease of logistics across States and Union Territories compared to 2019.
What changed in LEADS 2023 vs 2022
Maharashtra moved from achievers to fast movers; Odisha moved from achievers to aspirers.
Uttarakhand moved from achievers to fast movers; Himachal moved from achievers to aspirers.
Sikkim & Tripura moved from fast movers to achievers; Arunachal & Nagaland moved from aspirers to fast movers. Andaman & Nicobar & Lakshadweep moved from aspirers to fast movers.