Government planning to lower logistics cost

The government, in its budget, is expected to focus on infrastructure investments that will lower the total cost of logistics for the end consumer. The entire western dedicated freight corridor is expected to be completed this year, connecting the NCR and major maritime ports such as Mundra, Pipavav and Nhava Sheva, and to continue its focus on improving infrastructure by prioritising other corridors such as the North-South, East-West, East-South, and West-South corridors for uninterrupted rail movement of freight trains to facilitate domestic cargo movement. In addition, investments in the digitalisation of supply chain management, with emphasis on new technology such as internet of things (IoT) should be made. With the third pandemic wave, the industry is looking for policy support and tax relief to help enhance the ease of doing business. India’s logistics costs are about 5 per cent more than the world average, resulting in a significant competitive difference. The government should take action to remove inefficiencies in the supply chain and narrow the gap.


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