A National Logistics Portal is being developed by the Ministry of Commerce and Industry to ensure ease of trading in the international and domestic markets. The portal will link all the stakeholders of EXIM, domestic trade and movement and all trade activities on a single platform.
In this year’s budget speech, Finance Minister 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 defragmented and the aim is to reduce the logistics cost from the present 14% of GDP to less than 10% by 2022.
India’s logistics sector is very complex with more than 20 government agencies,
40 partnering government agencies (PGAs),
37 export promotion councils,
160 billion market size.
It also involves 12 million employment base,
200 shipping agencies,
36 logistic services,
50 IT ecosystems and banks & insurance agencies.
Further, 81 authorities and 500 certificates are required for EXIM.
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 % decrease in indirect logistics cost leading to the growth of 5 to 8% in exports. Further, the Survey estimates that the worth of Indian logistics market would be around USD 215 billion in next two years compared to about USD 160 billion currently.
The portal will be implemented in phases and will fulfil the commitment of the Government of India to enhance trade competitiveness, create jobs, boost India’s performance in global rankings and pave the way for India to become a logistics hub.
Logistics division has also planned to create an IT backbone and develop a National Logistics Information Portal which will be also an online Logistics marketplace that will serve to bring together the various stakeholders viz logistics service providers, buyers as well as Central & State Government agencies such as Customs, DGFT, Railways, Ports, airports, inland waterways, coastal shipping etc., on a single platform.
The Logistics division in the Department of Commerce was created consequent to the amendment to the second schedule of the Government of India (Allocation of Business) Rules, 1961, on 7th July 2017, that allocated the task of “Integrated development of Logistics sector” to the Department of Commerce. The division is headed by a Special Secretary to Govt of India and has been given the mandate to develop an Action Plan for the integrated development of the logistics sector in the country, by way of policy changes, improvement in existing procedures, identification of bottlenecks and gaps and introduction of technology in this sector.
The planned activities of the Logistics division shall have an impact not only on the domestic movement of goods by bringing down the overall cost and increasing the speed and ease of goods movement, but shall also contribute towards making Indian goods more competitive in the global market. With the improvement in India’s ranking in the Logistics Performance Index (LPI), Indian exports shall automatically see an enhanced growth.