Logistics sector Current Affairs
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Union Minister of Commerce & Industry and Civil Aviation Suresh Prabhu launched logo and brochure of Logix India 2019 in New Delhi. Logix India 2019 is scheduled to take place in New Delhi from 31stJanuary to 2nd February 2019. It is being organized by Federation of Indian Export Organisations (FIEO).
Logix India 2019
It aims to serve as major initiative to improve logistics cost effectiveness and operational efficiencies for India’s global trade. It will enable effective international trade logistics and help provide efficient and cost-effective flow of goods on which other commercial sectors depend
Over 20 countries are going to participate in this event. Through Logix India 2019, FIEO will also focus on investment opportunities in infrastructure development, technology integration, warehouse consolidation and IT enablement andskilling of manpower at the three-day meet.
Need for integrated Logistics sector development
The logistics cost in India is very high compared to developed countries. High cost reduces competitiveness of Indian goods both in domestic as well as export market. Logistics sector is expected to grow to US $360 billion by 2032 from current US $115 billion. Increasing globalization of Indian economy, along with renewed manufacturing vigour attributed to Make in India Campaign and growth of e-commerce business all forecast rapid growth in Indian logistics sector. India was ranked 44 in World Bank Logistics Performance Index 2018. As per Economic Survey 2017-18, India’s logistics industry which is worth around US $160 billion is likely to touch US $215 billion in the next two years. This sector provides employment to more than 22 million people and is expected to grow at rate of 10.5% over the next 5 years. Logistics is also backbone of India’s international trade and will help in diversification of not only India’s export basket but also of products and countries.
Tags: Business • Economy of India • India • Logistics • Logistics sector • Logix India 2019 • Lok Sabha • Multi-Modal Logistics Parks in India • National • Parliament of India • Suresh Prabhu • Systems engineering
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.
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.
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.