Boost Infrastructure to boost Indian Logistics

The state of Logistics Infrastructure is very pathetic and needs to be improved by creating a sophisticated mechanism

In a seminar organized by Confederation of Indian Industry (CII), Mr. Ajay Shankar, Secretary, DIPP, Ministry of Commerce and Industry said that bringing down the logistics cost of 13% of the GDP now to a globally competitive 8% of GDP is itself the biggest challenge before the country. But he was focussed to warehousing sector when he said that bringing down logistics cost is creating business opportunity in logistics sector where warehousing is the key verticals. He missed the major issue which is very much responsible for the 13 percent logistics cost. Yes! The infrastructure.

There is a lot more to do for the enhancement of the condition of Indian Logistics Infrastructure which has been the biggest obstacle and been hindering the growth of the sector. For the last couple of years, however, the government has planned well to work on the betterment of the Logistics Infra but the agencies like NHDP failed to achieve the timeline. PPP model of the government worked well in some instances particularly in container operations of railways in the first phase of the bid when 15 private operators got license to run the trains. These operators invested a huge amount of money into the infrastructure setup. But the model in other sectors is still awaiting positive responses from the government and the private players.

Ok, Other side! Government’s dedication towards the improvement of rural infrastructure is somehow fruitful to the sector. Now the rural-urban linkage has been enhanced and the product is reading to end user with satisfactory time. Still some rural parts of the country are awaiting development in the condition of transportation and storage. These areas need to be looked upon immediately.

Everyone is aware of the pathetic condition of ports. JNPT is overcrowded. Other ports are too small to handle large volumes. The condition gets worsened when monsoon comes. Building new ports is taking time. Need to say more?

There must be a combined approach to address the issue. Not only the government but the private players can also play crucial role in improving the condition of the Indian logistic infrastructure. PPP model would certainly work. But an imperative mechanism is required to get the plans executed in a sophisticated manner...

Cheers!!
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