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DPIIT and NCAER sign MoU for logistics costs assessment
WAREHOUSING & LOGISTICS

DPIIT and NCAER sign MoU for logistics costs assessment

The Department for Promotion of Industry and Internal Trade (DPIIT) and the National Council of Applied Economic Research (NCAER) have signed a Memorandum of Understanding (MoU) for the development of a framework and assessment of logistics costs in India. The MoU was signed by Anil Sharma, Secretary and Operations Director of NCAER, and S K Ahirwar, Joint Secretary of DPIIT.

This agreement involves developing a detailed framework for assessing logistics costs in the country, conducting a comprehensive study for the year 2023-24, and examining the differences in logistics costs across various routes, modes, products, types of cargo, and service operations. The MoU also includes identifying major determinants and their influence on logistics in different sectors. NCAER will conduct the detailed study and submit the report within a year.

The government launched the National Logistics Policy (NLP) on September 17 2022, with one of its primary objectives being to reduce the percentage of logistics costs relative to GDP. In line with this, the Logistics Division of DPIIT released a report titled "Logistics Cost in India: Assessment and Long-term Framework" in December 2023. Prepared by NCAER, this report provided a baseline aggregate logistics cost estimate and a framework for long-term logistics cost calculation.

"The logistics cost of the country needs to be regularly assessed and monitored so that data on cost variation will benefit both the industry and policymakers. This process involves using data on trade flows, product types, industry trends, and origin data pairs. In addition to conducting detailed secondary surveys, this requires an institutionalised framework for systematic and periodic data collection," a statement from the Ministry of Commerce and Industry said.

(Source: FE)

The Department for Promotion of Industry and Internal Trade (DPIIT) and the National Council of Applied Economic Research (NCAER) have signed a Memorandum of Understanding (MoU) for the development of a framework and assessment of logistics costs in India. The MoU was signed by Anil Sharma, Secretary and Operations Director of NCAER, and S K Ahirwar, Joint Secretary of DPIIT. This agreement involves developing a detailed framework for assessing logistics costs in the country, conducting a comprehensive study for the year 2023-24, and examining the differences in logistics costs across various routes, modes, products, types of cargo, and service operations. The MoU also includes identifying major determinants and their influence on logistics in different sectors. NCAER will conduct the detailed study and submit the report within a year. The government launched the National Logistics Policy (NLP) on September 17 2022, with one of its primary objectives being to reduce the percentage of logistics costs relative to GDP. In line with this, the Logistics Division of DPIIT released a report titled Logistics Cost in India: Assessment and Long-term Framework in December 2023. Prepared by NCAER, this report provided a baseline aggregate logistics cost estimate and a framework for long-term logistics cost calculation. The logistics cost of the country needs to be regularly assessed and monitored so that data on cost variation will benefit both the industry and policymakers. This process involves using data on trade flows, product types, industry trends, and origin data pairs. In addition to conducting detailed secondary surveys, this requires an institutionalised framework for systematic and periodic data collection, a statement from the Ministry of Commerce and Industry said. (Source: FE)

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