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Key Points

India has unveiled its first comprehensive logistics cost assessment, providing a scientifically derived estimate of 7.97% of GDP. The study, launched by Commerce Minister Piyush Goyal, aims to enhance global competitiveness and reduce business expenses. By capturing logistics costs across different transport modes and firm sizes, the report offers unprecedented insights into the country's economic infrastructure. This initiative supports the broader vision of positioning India as a global logistics hub.

Key Points: Piyush Goyal Reveals India's First Comprehensive Logistics Cost Study

  • First scientific estimate of India's logistics costs at 7.97% of GDP
  • Multi-modal approach captures freight expenses across transport sectors
  • National Logistics Policy drives comprehensive cost assessment framework
  • Infrastructure and GST reforms aim to reduce logistics inefficiencies
2 min read

Centre unveils comprehensive logistics cost assessment to boost global competitiveness

Centre launches groundbreaking logistics cost assessment to enhance global competitiveness and reduce business expenses across multiple sectors.

"Studies and reports are helping identify key issues in logistics costs. - Piyush Goyal, Commerce Minister"

New Delhi, Sep 20

For the first time, India will have a comprehensive and scientifically derived estimate of logistics costs, using a hybrid methodology that combines secondary data with nationwide surveys, the government said on Saturday.

The initiative follows the mandate of the National Logistics Policy (2022) to establish a uniform framework for measuring logistics costs and bench-marking them against global practices.

On the occasion of marking a decade of "Make in India", Commerce Minister Piyush Goyal launched a report on Assessment of Logistics Cost in India at an event here.

He highlighted that the government has undertaken multiple initiatives to make logistics more competitive and reduce the cost of doing business in India.

The minister noted that studies and reports prepared by the Industry and Commerce Departments are helping identify key issues in logistics costs.

Efforts such as mapping each Harmonised System of Nomenclature (HSN) code to the respective line ministry streamline coordination and strengthen India's position in free trade agreement (FTA) negotiations.

He further emphasised that the creation of a logistics data bank, the implementation of integrated state and city logistics plans under the SMILE programme in collaboration with the ADB, and infrastructure projects spearheaded by NICDC and other agencies aim to assess available facilities, improve transport and connectivity, and reduce inefficiencies.

These measures, along with reforms such as GST implementation and rationalisation, are central to ongoing efforts to reduce logistics costs, enhance ease of doing business, and boost competitiveness.

Until now, logistics costs in India were often misrepresented, with commonly cited figures of 13-14 per cent of GDP derived from external studies or partial datasets.

This led to inconsistent estimates, causing confusion among policymakers and global stakeholders. As per the current assessment prepared by NCAER for DPIIT, logistics costs in India are estimated at about 7.97 per cent of total GDP.

The report provides a comprehensive framework by capturing logistics costs across different transport modes, product categories, and firm sizes.

It also presents estimates of freight cost per tonne-kilometre and highlights the role of multi-modality in enhancing efficiency. By providing evidence-based guidance, the study strengthens India's efforts to improve competitiveness and supports the broader vision of positioning the country as a global logistics hub.

- IANS

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Reader Comments

P
Priya S
Good initiative but implementation is key. Our logistics infrastructure still has gaps - last mile connectivity, warehouse quality, and interstate documentation needs improvement. Hope this data leads to actionable solutions.
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Aman W
As someone in manufacturing, I can tell you logistics costs have been killing our margins. GST helped but we need better roads, faster clearances, and more efficient transport. This data-driven approach is the right direction 👍
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Sarah B
Interesting development. Having accurate logistics cost data will make India more attractive for foreign investment. The multi-modal approach mentioned could really optimize supply chains across the country.
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Karthik V
Hope this isn't just another report that sits on shelves. We need to see actual reduction in logistics costs that benefits small businesses and farmers. The SMILE programme with ADB sounds promising though.
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Michael C
The HSN code mapping to ministries is a smart move. Should reduce bureaucratic delays significantly. India's logistics modernization is happening at impressive speed compared to a decade ago.

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