NEW DELHI: ASSOCHAM is organising a Conference on “India – On the Cusp of a Logistics Revolution – key to Transformation of the Indian Economy " on 13 July 2017 at Hotel Le-Meridien, New Delhi.
Assocham states, Logistics infrastructure is a critical enabler of India’s economic development. Despite significant increase in planned outlay by the Government, Country’s network of roads, rail and waterways will be insufficient as freight movement increases about 3 fold over the next decade. India’s future logistics network is to be built optimally, to meet the growing demand through an integrated and coordinated approach in which the development of each mode—railways, waterways and roads—is matched to the needs and existing assets are better utilised.
Around USD 45 billion is lost each year due to inefficiencies in India’s logistics network. While in absolute terms, industry spend on logistics in India is low—the relative spend is high. India spends 13 per cent of GDP on logistics compared to US (9.5 per cent) and Germany (8 per cent) spend. The current waste caused by poor logistics infrastructure is expected to increase to USD 140 billion by 2020 (almost 5% of GDP). These not only result in higher prices and lower competitiveness, but also hampers economic growth. If tackled in coordinated manner, waste can be reduced by half and India’s transport fuel requirement would also reduce by 15 to 20 per cent.
India requires a National Integrated Logistics Policy (NILP). Such a policy should target a greater share of rail, reduce economic waste and improve energy efficiency. The policy will need to establish dedicated rail freight corridors, coastal freight corridors, national expressways, last-mile roads, last-mile rail, multi-modal logistics parks, road maintenance, technology adoption, skills development and equipment and service standards.
An empowered cross ministerial group will be needed to drive this effort, define programmes, allocate budgets, monitor implementation, and ensure continual coordination across ministries. The high level National Transport Policy Development Committee recently set up by the Government to develop policy recommendations is the first step in this direction.
Objective of the conference - To promote National Integrated Logistics Policy (NILP) could help the government to reduce recurring losses to the economy and improve capital efficiency.
• It could define the blueprint for the most effective and efficient logistics infrastructure to support a balanced modal mix, based on the anticipated increase in freight flows by 2020.
• It can ensure better coordination between multiple national and state-level bodies responsible for developing logistics infrastructure.