India Sets New Course with Scientifically Derived Logistics Cost Framework

The Indian government has unveiled a new framework to scientifically assess the country's logistics costs, aligning with the National Logistics Policy's goal of creating a standardized measurement system. This comprehensive approach marks a departure from previous inconsistencies and aims to provide policymakers and stakeholders with accurate cost data for the first time.

The Ministry of Commerce and Industry emphasized that this method combines secondary data and nationwide surveys to provide a reliable estimate of logistics costs, which were previously misunderstood due to reliance on external studies. The current estimate, conducted by NCAER for DPIIT, suggests logistics costs are approximately 7.97% of GDP, substantially lower than historical figures.

As part of broader industrial progress, Minister Piyush Goyal launched the Industrial Park Rating System (IPRS) 3.0, intended to boost competition and transparency among India's industrial parks. Supported by the Asian Development Bank, this initiative seeks to enhance the country's industrial ecosystem with 20 new plug-and-play parks, facilitating informed investment decisions.

(With inputs from agencies.)