Logistics sector Current Affairs

Government developing National Logistics Portal

Union Ministry of Commerce and Industry is developing National Logistics Portal is to ensure ease of trading in international and domestic markets. The portal will link all stakeholders of EXIM (export and import), domestic trade and movement and all trade activities on single platform.

National Logistics Portal

It will be implemented in phases and will fulfil Central Government’s commitment to enhance trade competitiveness, create jobs, boost India’s performance in global rankings and pave way for India to become logistics hub. Stakeholders like traders, manufacturers, logistics service providers, infrastructure providers, financial services, Government departments and groups and associations will all be on one platform.

Background

In 2018-19 budget speech, Union Finance Minister had announced that Department of Commerce will create portal which will be single window online market place for trade and will connect business, create opportunities and bring together various ministries, departments and private sector.

Logistic Sector

India’s logistics sector is highly defragmented and very complex with more than 20 government agencies, 40 partnering government agencies (PGAs), 37 export promotion councils, 500 certifications, 10000 commodities being stakeholders in it. At present it has 160 billion market size and involves 12 million employment base, 200 shipping agencies, 36 logistic services, 50 IT ecosystems and banks and insurance agencies. Government is aiming is to reduce logistics cost from present 14% of GDP to less than 10% by 2022. As per Economic Survey 2017-18, Indian logistics sector provides livelihood to more than 22 million people. Improving this sector will facilitate 10% decrease in indirect logistics cost leading to growth of 5 to 8% in exports. Further, it estimates that worth of Indian logistics market will be around US $215 billion in next two years compared to about US $160 billion currently.

Month: Categories: India Current Affairs 2018

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Global Logistics Summit 2018 held in New Delhi

The Global Logistics Summit (GLS-2018) was held in New Delhi from April 5-6, 2018 to improve logistics and connectivity which are vital for increasing intra-state and international trade flows.

The summit was organised by Department of Commerce, Ministry of Commerce & Industry along with Federation of Indian Chambers of Commerce & Industry (FICCI) and World Bank Group. It provided platform to hold discussions for global experts, academics, government officials and private sector and industry representatives.

Logistic Sector

The sector involves transportation, material handling, warehousing, packaging, shipping security, inventory management, and supply chain management, procurement, and customs service. Government has defined logistic as multimodal logistics park comprising an Inland Container Depot (ICD) with a minimum investment of Rs.50 crore and minimum area of 10 acre. In November 2017, logistic sector was granted infrastructure status.

Importance of Logistic Sector

India spends around 14.4% of its GDP on logistics and transportation sector. It employs over 45 million people across country and its certain sub-sectors growing at rate of 15% and even 30-40% per annum. It provides efficient and cost effective flow of goods from manufacturing sector on which other commercial sectors dependent.

Month: Categories: Business & Economy Current Affairs 2018

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