India's Strategic Free Trade Agreements: Boosting Exports and Sustainable Logistics

At a conference organized by the Confederation of Indian Industry, Rajesh Agrawal, Special Secretary of the Department of Commerce, underscored the importance of India's active Free Trade Agreement (FTA) negotiations in boosting its role in global value chains (GVCs). He stressed the need for building cohesive multimodal transportation networks to trim logistics costs and propel export-driven economic growth.

Agrawal proposed that expanding air, port, rail, and road capacities, alongside enhancing cold chain logistics in agriculture, is essential. He highlighted the crucial goal of achieving net-zero carbon emissions by 2027, urging sustainable logistics practices to minimize carbon output.

Shantanu Thakur, Minister of State for Ports, Shipping, and Waterways, asserted the necessity of developing shipping and waterways to bolster India's exports. He advocated for integrating artificial intelligence into logistics to expedite cross-state goods transportation, emphasizing that 70% of trade occurs via shipping, necessitating significant industry advancements.

Thakur also stressed the importance of robust communication infrastructure connecting India's far-reaching areas, while Vijay Kumar, Chairman of the Inland Waterways Authority, discussed achieving a USD 2 trillion export target by 2030 and the significance of inland waterways in reducing logistics costs while supporting sustainability.

B Thiagarajan, Chairman of CII Trade Fairs Council, urged the integration of technology and automation in logistics, advocating for shifts to greener transport solutions like rail and waterways. He called for investment in green warehousing and collaborative efforts to further enhance the export capabilities of India's industry sector.

(With inputs from agencies.)