DPIIT Secretary Amardeep Singh Bhatia: Cutting Logistics Costs Vital for India’s Competitive Edge in Global Markets

 Using companies like Amazon and Flipkart as prime examples, he highlighted how they have successfully penetrated even the most remote regions of the country, underscoring the importance of an efficient logistics network in supporting this growth.

Bhatia pointed out that logistics costs in India are already on a downward trend, largely due to the availability of adequate skilled labor, which has been instrumental in reducing operational expenses. He credited several key factors for this reduction, including government initiatives such as protection from predatory imports, the implementation of Production Linked Incentive (PLI) schemes, and the enhanced availability of working capital. These measures, he said, are vital in strengthening the logistics ecosystem, which in turn supports the broader goals of the consumer durables and e-commerce sectors.

While advocating for increased expenditure on research and development (R&D), Bhatia stressed that the industry should not only focus on collaborations based on current domestic demand but also prepare for the future export market. He emphasized that as logistics costs continue to decrease, Indian companies must leverage this advantage to scale their presence in global markets.

Drawing comparisons to export-driven economies like Thailand and China, Bhatia acknowledged that India’s consumer durables industry has already established a strong foothold in regions such as Africa and the Middle East. However, he underscored that true success would be measured by the industry’s ability to export to more developed nations, such as Japan. This, he noted, would require a relentless focus on maintaining high standards of quality and achieving technological leadership to remain competitive on the global stage.

During the summit, a report titled Vision 2030: India’s Rise as a Global Force in Consumer Electronics and Durables was released. The report projected that by 2030, India’s consumer durables industry would grow to ₹5 lakh crore, creating 5 lakh jobs for skilled workers throughout the value chain. Bhatia reiterated that the continuous reduction of logistics costs would be a critical factor in enabling the industry to achieve these ambitious goals, as it would enhance India’s competitiveness in both domestic and international markets.