India's Logistic Costs Decline to 7.8-8.9% in 2021-22

• 15 Dec 2023

Recently, a joint report by the National Council of Applied Economic Research (NCAER) and the Department for Promotion of Industry and Internal Trade (DPIIT) indicates a decrease in India's logistic costs to 7.8-8.9% during 2021-22, down from 8.7-9.9% in 2011-12.

Key Points

• Decline in Logistic Costs over the Years: The report, titled 'Logistic Cost in India: Assessment and Long-term Framework,' highlights a reduction in India's logistics costs from 8.7-9.9% in 2011-12 to 7.8-8.9% in 2021-22.
• Impact of National Logistics Policy: The government's investment in physical and digital infrastructure aims to create an enabling environment for data-based planning and policymaking.
• National Logistics Policy Implementation: Launched in September 2022, India's National Logistics Policy seeks to reduce logistics costs.
• The latest report plays a crucial role in achieving the policy's goal by recommending a hybrid approach using primary and secondary survey data, along with real-time Big Data.
• Institutionalizing Data Collection: To ensure evidence-based decision-making, the ministry of commerce proposes estimating logistics costs regularly, preferably annually.
• An MoU with NCAER is planned to institutionalize the systematic and periodic process of data collection.