Department of Commerce, CII sign MoU for development of Logistics sector

Jan 17, 2018 10:23 IST
Department of Commerce, CII sign MoU for development of Logistics sector

The Department of Commerce on 16 January 2018 signed a Memorandum of Understanding (MoU) with the Confederation of Indian Industry (CII) for setting-up of an institutional mechanism for the integrated development of Logistics sector in the country.

The agreement was signed in the presence of the Minister for Commerce & Industry Suresh Prabhu in New Delhi. Speaking on the occasion, the Minister congratulated the Logistics division of DoC and CII for this initiative and urged them to work together for taking Logistics sector to global levels both in terms of efficiency and cost.

Key objective - Modernise India’s logistics sector and bring it at par with the global best.

Action Plan

• The Government has decided to reduce the Logistics cost in the country from the present 14% of GDP to less than 10% by 2022.

• A concerted effort in collaboration with Central line Ministries as well as State Governments has been initiated for simplifying the regulatory processes in both domestic and EXIM logistics.

• The logistics division headed by a Special Secretary of the Department of Commerce is working on a comprehensive action plan to reduce the cost of EXIM and domestic Logistics in the country by making it more efficient through easing of processes, induction of Information Technology and co-ordinated enhancement of logistics infrastructure in the country.

• The Government has also recently granted infrastructure status to a number of logistics activities, which would enable them to avail cheaper and long-term commercial loans.

• Besides this, work has also been initiated on an integrated logistics portal that will be a transactional e-marketplace connecting buyers with logistics service providers with all the Government agencies such as Customs, PGAs, Port Community Systems, Sea and Airport terminals, Shipping lines and Railways.

• Further, the logistics division has planned to enter into a formal partnership with all the stakeholders in order to establish linkages with the Government agencies, industry and academia, for developing a detailed action plan.

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Following are some of the key action points:

- To establish Logistics Working group with representatives from DoC and Industry to examine issues related to logistics and recommend solutions.

- To foster focused engagement with the industry.

- To collaborate with the concerned agencies including state governments and other related agencies.

- To undertake mutually agreed focused studies on logistics.

- To promote government’s policies on logistics.

India to regain top spot with GDP pegged at 7.3% in 2018-19: World Bank

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