NCAER pegs India’s logistics cost between 7.8-8.9% of GDP in FY22
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The logistics cost in India ranged from 7.8-8.9% of gross domestic product (GDP) in 2021-22, as per a study released by economic think-tank National Council of Applied Economic Research (NCAER) and commissioned by the Department for Promotion of Industry and Internal Trade (DPIIT).

“The kind of investment that India is making in both physical and digital infrastructure....all that is creating an enabling environment where we will start getting good and credible data, on the basis of which we can do data-based planning and ultimately data based policy making as well,” DPIIT secretary Rajesh Kumar Singh said while releasing the study.


Singh said that the figures are calculated by NCAER on behalf of the government, and that through the report, a framework is being developed which will be used to calculate credible logistics cost estimates.At present, the government is going by certain estimates which suggest that India's logistics costs are around 13-14% of the country’s GDP.

 

“Goods and services tax implementation was a game changer for reducing trucks’ delay time…the logistics costs probably don’t exceed 10%,” Singh said.

 

The department is also working to improve India’s ranking in World Bank’s Logistics Performance Index and figure in top 25 from 38 at present.

 

“The process was done in a consultative manner and we are establishing a long term framework for an aggregated approach to improve logistics efficiency and reduce costs,” said Sumita Dawra, special secretary (logistics), DPIIT.

 

NCAER Professor Poonam Munjal said that these are quick estimates and going forward, by use of more granular data, these numbers will be refined further.

 

“These are ballpark numbers... and we prefer to keep them in ranges,” she said.

 

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