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Govt aims to bring down logistics cost down to 5 per cent of GDP
The Center intends to bring down the cost of logistics to 5 to 6 percent of the gross domestic product (GDP), Commerce Minister PiyushGoyal, said.
Mr.G.Chandrasekar Dec 18 2023 Logistics News (Roadways & Railways)

Govt aims to bring down logistics cost down to 5 per cent of GDP

Speaking at an event I Chennai last week, he said it will be the result of improving efficiency as well as the function of moving up the value chain. "Moving up from raw material being the important material (in exports) to having more and more value-added products, which have significant quality and technology behind them."

 

The value proposition of the finished product going up will also have an impact on the cost of logistics in the country, he added. The minister said the logistics costs are showing a downward trajectory, referring to the DPIIT and National Council of Applied Economic Research (NCAER) report. It states logistics cost in the country has reduced to a range of 7.8- 8.9 per cent of the GDP in 2021-22 from 8.8 per cent in 2012-13.

PiyushGoyal said logistics can be the centre piece of development vision and the country should focus on skill development, capacity building, more formalization of the logistics sector and use of technology. Emphasizing the participation of states, he said that all states should have a logistics policy and monitoring framework in line with national policy