Inefficient Logistics is Hurting the Economic Growth

Minister of State for Commerce & Industry C R Chaudhary recently said that India is losing 14% of GDP due to inefficient logistics which impacts the competitiveness of Indian products.

Chaudhary outlined various initiatives taken by the government to develop the Transport & Logistics sector in the country.

He was delivering the valedictory address at Global Logistics Summit jointly organised by FICCI; Ministry of Commerce, Govt. of India and World Bank Group.

"Logistics is an important sector and it is clear that the government is giving importance to the development of better connectivity with projects like Bharatmala Pariyojana, Sagar Mala project and UDAN scheme which will boost the logistics system in the country," he said.

Ramesh Abhishek, Secretary, Department of Industrial Policy & Promotion, Ministry of Commerce & Industry said, to achieve high economic growth, India needs to make the industry competitive.

He further added that cost of various other things also need to be competitive and logistics contributes majorly to the cost of manufacturing and services and is now getting the long due importance.

"Much needed capital investments are being made, infrastructure development is taking place and thrust is on timely completion of projects. GST is playing an important role in the logistics sector and ease of doing business scenario is also improving, said Mr. Ramesh Abhishek.

Jun Zhang, Country Manager, International Finance Corporation said that a comprehensive regulatory framework is required for the logistics sector in India.

Sanjaya Baru, Secretary General, FICCI, said that efficient logistics will play a vital role in India's Make in India program.