Odisha Governor flags global supply chain disruptions, calls for lower logistics costs to boost competitiveness
Puri, May 22
India has taken several proactive steps to strengthen the country's logistics ecosystem and reduce logistics costs to improve global competitiveness, Odisha Governor Hari Babu Kambhampati said on Friday.
Stating that global trade environment was facing major challenges due to geopolitical tensions, supply chain disruptions, rising freight costs and uncertainty in shipping routes, the Odisha Governor stressed the need for resilience, innovation and coordinated action in the logistics sector.
Addressing the 6th Executive Committee Meeting of the Federation of Freight Forwarders' Associations in India (FFFAI) for the 2025-27 term in Puri, Kambhampati said, "The global trade environment today is passing through a challenging phase. Geopolitical tensions, supply chain disruptions, rising freight costs, war risk surcharges, container shortages, and uncertainty in international shipping routes have affected global commerce."
He said these developments have increased pressure on governments and industries worldwide to build resilient and efficient supply chains.
"These challenges demand resilience, innovation and coordinated action from governments and industry," he added.
Highlighting the government's focus on logistics reforms, the Governor said the Ministry of Commerce and Industry has created a separate department dedicated to logistics, recognising the importance of reducing logistics costs in India.
"The Ministry of Commerce and Industry has opened up a separate department on logistics and it identified the cost of logistics in India is very high compared to many other countries," he said.
"The emphasis of the Government is how the logistics cost can be reduced so that our goods will be internationally competitive," Kambhampati said
The Governor also appreciated the initiatives undertaken by FFFAI in areas such as skill development, digitalisation, women empowerment and youth participation in the logistics sector.
"FFFAI has taken commendable initiatives in skill development, digitalisation, women empowerment, and youth participation in the logistics sector," he said.
The remarks come amid continued global trade uncertainties and ongoing efforts by India to strengthen logistics infrastructure, improve supply chain efficiency and enhance export competitiveness.
— ANI
Reader Comments
Good to see focus on digitalisation and women empowerment in logistics! 👩💼 My sister recently joined a freight forwarding company and says the industry is slowly modernising. But the ground reality in smaller ports like Paradip is still chaotic - too much paperwork and delays. Hope the Governor's words translate into action at the grassroots level.
Respectfully, the Governor is stating the obvious. Every Indian businessman knows about high logistics costs. The real question is: why are we still paying 14% of GDP on logistics when developed countries manage 8-9%? We've been hearing about 'logistics reforms' for years. Time to show results, not just talk at meetings. 🚛
As someone who works in international trade, I can confirm the supply chain disruptions are real. The Red Sea crisis alone has added 20-30% to shipping costs. India needs to invest in alternative routes like the Chabahar port and strengthen inland waterways. Good to see Odisha taking the lead in this conversation. 🌏
"Build resilient and efficient supply chains" - easier said than done when our highways are still single-lane in many places and rail freight is expensive. The FFFAI meeting in Puri is symbolic though - Odisha has huge potential as a logistics hub with its ports. Need more PPP in warehousing and cold chains. Abhi bahut kuch karna hai! 💪
Appreciate the focus on skill development and youth participation. But with rising freight costs and war risk surcharges, smaller freight
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