Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

National Logistics Portal to boost trade competitiveness

Note4students

Mains Paper 3: Economy | Infrastructure: Energy, Ports, Roads, Airports, and Railways etc.

From UPSC perspective, the following things are important:

Prelims level: Particulars of the portal

Mains level: Importance and Contribution of  Logistics sector in India’s GDP.


News

Context

  1. A National Logistics Portal is being developed to ensure ease of trading in the international and domestic markets.
  2. India eyes lowering logistics cost from 14 per cent of GDP to less than 10 per cent by 2022.

National Logistics Portal

  1. The portal will link all the stakeholders of export-import, domestic trade and all trade activities on a single platform.
  2. This will help in generating jobs, increasing trade competitiveness and helping the country transform into a logistics hub.
  3. It will connect business, create opportunities and bring together various ministries, departments and the private sector.
  4. Stakeholders like traders, manufacturers, logistics service providers, infrastructure providers, financial services, government departments and groups and associations will all be on one platform
  5. The Department of Commerce has earlier decided to create a portal which will be a single window online marketplace for trade.

Logistics Sector of India

  1. India’s logistics sector is highly defragmented and the department aims to reduce the logistics cost from the present 14 per cent of GDP to less than 10 per cent by 2022.
  2. The country’s logistics is very complex with more than 20 government agencies, 40 partnering government agencies (PGAs), 37 export promotion councils, 500 certifications, 10,000 commodities and USD 160 billion market size.
  3. It also involves12 million employment base, 200 shipping agencies, 36logisticsservices, 50 IT ecosystems and banks and insurance agencies.
  4. As per the Economic Survey 2017-18, the Indian logistics sector provides livelihood to more than 22 million people.
  5. Improving the sector will facilitate 10 per cent decrease in indirect logistics cost leading to the growth of 5 to 8 per cent in exports.
  6. Further, the Survey estimates that the worth of Indian logistics market would be around USD 215 billion in next two years compared to about USD 160 billion currently.
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