DPIIT and NCAER Ink MoU to Develop Framework for Logistics Cost Assessment in India.
New Delhi:
The Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce & Industry, has partnered with the National Council of Applied Economic Research (NCAER) to forge a Memorandum of Understanding (MoU). This collaboration aims to establish a robust framework for assessing logistics costs across India.
The MoU, signed by Dr. Anil Sharma, Operations Director of NCAER, and Dr. S K Ahirwar, Joint Secretary of DPIIT, sets forth ambitious objectives including the development of a detailed assessment framework and conducting a comprehensive study on logistics costs for the fiscal year 2023-24. Additionally, the initiative will delve into the disparities in logistics costs across different routes, modes, product types, cargo categories, and service operations.
Speaking on the significance of data-driven evaluation of logistics costs, DPIIT Secretary Rajesh Kumar Singh highlighted the strategic importance of such initiatives in shaping policy and industry practices. A seminar accompanying the signing ceremony included a panel discussion involving senior officials from DPIIT, GSTN, international organizations, industry leaders, and academics.
Stakeholders from the logistics sector, including industry associations, emphasized the need for a nuanced approach considering the diverse nature of commodities and products of high value and volume. Suggestions were also made to incorporate intangible elements such as delays and the ease of business establishment, factors crucial for investors.
Under the terms of the MoU, NCAER will undertake the comprehensive study and submit the findings within one year. This initiative builds upon the National Logistics Policy (NLP), launched in September 2022, which aims to reduce logistics costs as a percentage of GDP. Previously, NCAER had prepared a baseline assessment of logistics costs and a framework for long-term cost calculations.
This collaborative effort underscores the government’s commitment to enhancing transparency and efficiency in the logistics sector through systematic data collection and analysis. Regular assessments are expected to provide valuable insights for both industry stakeholders and policymakers, facilitating informed decision-making and fostering sectoral growth.
