Union Ministry of Commerce and Industry is developing National Logistics Portal is to ensure ease of trading in international and domestic markets. The portal will link all stakeholders of EXIM (export and import), domestic trade and movement and all trade activities on the single platform.
It will be implemented in phases and will fulfil Central Government’s commitment to enhance trade competitiveness, create jobs, boost India’s performance in global rankings and pave way for India to become logistics hub. 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 very complex with more than 20 government agencies, 40 partnering government agencies (PGAs), 37 export promotion councils, 500 certifications, 10000 commodities being stakeholders in it. At present, it has a 160 billion market size and involves 12 million employment base, 200 shipping agencies, 36 logistic services, 50 IT ecosystems and banks and insurance agencies. Government is aiming is to reduce logistics cost from the present 14% of GDP to less than 10% by 2022.
As per Economic Survey 2017-18, Indian logistics sector provides livelihood to more than 22 million people. Improving this sector will facilitate 10% decrease in indirect logistics cost leading to the growth of 5 to 8% in exports. Further, it estimates that worth of Indian logistics market will be around the US $215 billion in next two years compared to about US $160 billion currently.