Commerce ministry developing national logistics portal
24 August 2018
The ministry of commerce and industry is developing a National Logistics Portal, which will link all the stakeholders in the export-import trade, domestic trade and movement and all trade activities on a single platform so as to ensure ease of trading in the international and domestic markets.
Finance minister Arun Jaitley had in his budget speech this year had announced that the Department of Commerce will create a portal, which will be a single window online market place for trade and will connect business, create opportunities and bring together various ministries, departments and the private sector.
Stakeholders like traders, manufacturers, logistics service providers, infrastructure providers, financial services, government departments and groups and associations will all be on one platform.
India’s logistics sector is highly fragmented and the aim is to reduce the logistics cost from the present 14 per cent of GDP to less than 10 per cent by 2022.
India’s logistics sector is very complex with more than 20 government agencies, 40 partnering government agencies (PGAs), 37 export promotion councils, 500 certifications, 10,000 commodities and a $160 billion market size. It also involves 12 million employees, 200 shipping agencies, 36 logistic services, 129 ICDs, 168 CFSs, 50 IT ecosystems and banks and insurance agencies. Further, 81 authorities and 500 certificates are required for EXIM trade.
As per the Economic Survey 2017-18, the Indian logistics sector provides livelihood to more than 22 million people and improving the sector will facilitate 10 per cent decrease in indirect logistics cost leading to the growth of 5 to 8 per cent in exports. Further, the Survey estimates that the worth of Indian logistics market would be around $215 billion in the next two years compared to about $160 billion at present.
The portal, which will be implemented in phases, will enhance trade competitiveness, create jobs, boost India’s performance in global rankings and pave the way for India to become a logistics hub, the release stated.