New Delhi, Department for Promotion of Industry and Internal Trade (DPIIT) has signed a pact with think tank NCAER to develop a detailed framework for assessment of logistics costs and carry out a cost assessment study for 2023-24.
The Ministry of Commerce and Industry said in a statement that the expert group would also make an assessment of the differentials in logistics costs between routes, modes, products, types of cargo and service operations; in addition to identifying the main determinants and their influence on logistics in different sectors.
He said the country's logistics cost should be assessed and monitored periodically so that data on cost variation benefits both the industry and policymakers.
This process involves using data on trade flows, product types, industry trends, and source data pairs.
In addition to conducting detailed secondary surveys, this requires an institutionalized framework for the data collection process in a systematic and regular manner.
"To this end, DPIIT and NCAER today signed an MoU with a key objective: to develop a detailed framework for the assessment of logistics costs in the country," the ministry said.
The Government of India launched the National Logistics Policy (NLP) on September 17, 2022, and one of the main objectives of the policy was to reduce the percentage of logistics cost to GDP.
In line with this, the DPIIT had earlier released a report titled Logistics Cost in India: Assessment and Long Term Framework in December 2023.
This report was prepared by the National Council of Applied Economic Research (NCAER), where an estimate of baseline aggregate logistics costs and a framework for calculating long-term logistics costs were prepared.
According to that report, the logistics cost in India ranged between 7.8 and 8.9 percent of the gross domestic product (GDP) in 2021-22.
This MoU envisages the NCAER to carry out the detailed study and submit the report within a year.
This study is likely to have far-reaching impacts on the Indian logistics sector.
The Ministry of Commerce and Industry said in a statement that the expert group would also make an assessment of the differentials in logistics costs between routes, modes, products, types of cargo and service operations; in addition to identifying the main determinants and their influence on logistics in different sectors.
He said the country's logistics cost should be assessed and monitored periodically so that data on cost variation benefits both the industry and policymakers.
This process involves using data on trade flows, product types, industry trends, and source data pairs.
In addition to conducting detailed secondary surveys, this requires an institutionalized framework for the data collection process in a systematic and regular manner.
"To this end, DPIIT and NCAER today signed an MoU with a key objective: to develop a detailed framework for the assessment of logistics costs in the country," the ministry said.
The Government of India launched the National Logistics Policy (NLP) on September 17, 2022, and one of the main objectives of the policy was to reduce the percentage of logistics cost to GDP.
In line with this, the DPIIT had earlier released a report titled Logistics Cost in India: Assessment and Long Term Framework in December 2023.
This report was prepared by the National Council of Applied Economic Research (NCAER), where an estimate of baseline aggregate logistics costs and a framework for calculating long-term logistics costs were prepared.
According to that report, the logistics cost in India ranged between 7.8 and 8.9 percent of the gross domestic product (GDP) in 2021-22.
This MoU envisages the NCAER to carry out the detailed study and submit the report within a year.
This study is likely to have far-reaching impacts on the Indian logistics sector.
