High Logistics Costs major impediments to economic growth: Gadkari
By TIOL News Service
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NEW DELHI, MAY 05, 2017: THE Minister of Road Transport and Highways, Mr Nitin Gadkari, inaugurated the three day India Integrated Transport and Logistics Summit (IITLS) in New Delhi today. Speaking on the occasion, he said that “Antyodaya” or the welfare of the weakest person in society is the foremost aim of this Government. To achieve this aim it is necessary to boost economic growth in the country. From the present GDP of around 7.5 percent India needs to achieve double digit growth figures. Mr Gadkari said that for India, one of the major impediments to such growth is our high logistics cost. "If the economy is to flourish and if we want to ensure sustainable and balanced growth in the country, we urgently need to reduce our logistics cost to globally comparable rates", he added.
The Minister further said that high logistics costs are a result of various modes of transport growing and developing in silos, in an un-integrated manner. Integrated, multi modal transport planning will help us to achieve a healthy modal mix of transport, which is efficient, faster, safer, import substituting, cost effective and pollution free. He also said that the logistics and transport sector has a very high potential for employment generation. It can provide jobs to the local youth after proper skill training. It can also provide employment opportunities in rural areas.
The IITLS has been organized with the objective of facilitating constructive dialogue between various stakeholders for the development of multimodal infrastructure in the country. For the first time, the Ministries of Road Transport & Highways, Shipping, Civil Aviation, Railways, Consumer Affairs, Food and Public Distribution, Skill Development, Commerce, Urban Development, Finance, various state governments and industry and infrastructure experts are getting together to deliberate on various connected issue and discuss the modalities for bringing about a transformation of the logistics and transportation scenario in India. This is urgently required to improve logistics costs in India. Currently India has a very poor Logistics Performance Index due to an unfavourable modal mix of transport and a lack of seamless intermodal connectivity.
In his address the Minister for Civil Aviation, Mr P Ashok Gajpathi Raju, said that India has witnessed explosive growth of air traffic and infrastructure in the last two to three years. He said that the Air Cargo industry is expected to register around 9% growth in the next few years. Given the circumstances, the coming up of logistics parks in the country will be very useful.
The Minister for Consumer Affairs, Food and Public Distribution, Mr Ram Vilas Paswan, in his address said that there is an impressive growth in Road, Waterways, Air and Rail sector. He said that procurement, storage and distribution of agricultural produce need proper and efficient logistics system to plug leakages, avoid rotting of grains and other perishable items and timely transport of the produce to the market . He said that there is a need to develop a National Common Market. He said connectivity between rail, road and waterways are required, so that farmers can take their produce to market in time and get better price.
Welcoming the efforts being put into the development of an integrated transport and logistics system the Minister for Railways, Mr Suresh Prabhu said that there is an urgent need to integrate all transport systems. He said that with implementation of GST, trade and business will grow with much faster rate. While fiscal barriers to the movement of goods have been done away with, the physical barriers also need to be removed. The Minister said that the various transport sectors like railways, aviation, roads and shipping are seeing a lot of growth and development in the recent years. The railways have greatly enhanced their investment, and decongestion and electrification of routes are being done on a war footing. Efficiency of freight terminals is being improved, and three more dedicated freight corridors have been planned. He also said that port rail connectivity is also becoming better and more efficient with the Sagarmala programme. He added that to make transport systems in the country truly efficient we need to focus on integrated, seamless, multi-modal growth.