Page 22 - ITLN January - February 2024 Issue for the Website

Spotlight
Logistics
costs

Unlocking India’s

potential through optimised

logistics costs

NCAER Report

The report, titled "Logistics Costs in India: Assessment and Long-term Framework,"
provides comprehensive insights into the intricacies of India's logistics expenses,
revealing a nuanced picture of their impact on the country's economic performance.

Nehal Gautam
n a landmark revelation, the findings, released on December 14, 2017-18, and 7.9% to 9% in 2016-17.
National Council of Applied 2023, expose the extent of logistics Moreover, the decline in logistics
Economic Research (NCAER) costs, ranging between 7.8% to 8.9% of costs as a percentage of GDP from
Iunveiled the first official estimates the GDP during the fiscal year 2021-22. 2014-15 to 2016-17 is attributed to
of India's logistics costs, bringing into One of the report's noteworthy various factors, including fluctuations
focus a critical aspect of the nation's observations is the reduction in logistics in fuel prices.
economic landscape. The report, titled costs to 8.9% of GDP, attributed However, the NCAER report is not
"Logistics Costs in India: Assessment to advancements in infrastructure merely a reflection of the current state;
and Long-term Framework," provides facilitated by increased government it serves as a blueprint for strategic
comprehensive insights into the expenditure on highways, ports, and measures aimed at further reducing
intricacies of India's logistics expenses, digitisation. This transformative impact logistics costs. The recommendations
revealing a picture of their impact on has significantly accelerated the span across diverse facets, including
the country's economic performance. movement of cargo, fostering a more infrastructure development, congestion
As India endeavors to achieve efficient logistics ecosystem. alleviation, modal shifts, digitalization,
its ambitious goal of becoming a To comprehend the significance and cost reduction in administration
USD 5 trillion economy, the NCAER of these revelations, it is essential to and management. These proposals
report becomes a cornerstone in delve into the historical context. The align with India's broader vision of
understanding the dynamics of report notes that logistics costs in fostering a competitive industrial
logistics costs, a key determinant in India ranged between 8.1% to 9.2% landscape and are underscored by the
the nation's economic trajectory. The of GDP in 2018-19, 7.5% to 9% in National Logistics Policy.
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