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DPIIT and NCAER sign MoU for framework and assessment of logistics cost in India
The Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry, and the National Council of Applied Economic Research (NCAER) signed a Memorandum of Understanding (MoU) on Friday 5 July, to develop a framework for assessing logistics costs in India.
Dr.G.R.Balakrishnan Jul 08 2024 Logistics News (Roadways & Railways)

DPIIT and NCAER sign MoU for framework and assessment of logistics cost in India

The MoU was signed by Dr. Anil Sharma, Secretary and Operations Director of NCAER, and Dr. S K Ahirwar, Joint Secretary of DPIIT. The event was graced by Shri Rajesh Kumar Singh, Secretary of DPIIT.

The key deliverables of the MoU include:- Developing a detailed framework for assessing logistics costs in the country; Conducting a comprehensive study to assess logistics costs for the year 2023-24; Evaluating differentials in logistics costs across various routes, modes, products, types of cargo, and service operations and Identifying major determinants influencing logistics costs in different sectors.

Shri Rajesh Kumar Singh emphasized the importance of data-based evaluation of logistics costs.

 The seminar featured a panel discussion with senior government officers from DPIIT and GSTN, representatives from multilateral institutions, industry professionals, and academicians. NCAER is expected to conduct a detailed study and submit the report within a year. This study is anticipated to have significant impacts on India’s logistics sector

This MoU envisages NCAER to conduct the detailed study as above and submit the report within a years’ time.  This study is likely to result in far reaching impacts for the logistics sector in India.  

The logistics cost of the country needs to be regularly assessed and monitored such that the data of cost variation will both benefit the industry and the policy makers. This process involves using data of trade flows, product types, industry trends and origin data pairs. In addition to conducting the detailed secondary surveys, this requires an institutionalised framework for the process of data collection in a systematic and periodic manner. 

Regular assessment and monitoring of logistics costs are crucial for benefiting both the industry and policymakers. This process involves analyzing data on trade flows, product types, industry trends, and origin-destination pairs. In addition to conducting detailed secondary surveys, an institutionalized framework for systematic and periodic data collection is necessary.