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Research and Estimation of Macroeconomic Logistics costs

High Logistics Costs in India compared to countries with similar environment & state of development are matter of concern for manufacturing growth and comprehensive development of the country. Several reasons are often cited for high logistics costs namely, unfavourable policy regime, lack of multimodal transport system (heavy reliance on road transport), fragmented Storage infrastructure, presence of multiple stakeholders in the entire transport and storage value chain, poor quality of road and port infrastructure, and the absence of technology intervention at storage/transportation and distribution activities. The high cost of logistics affects the country’s competiveness in export and domestic markets. It is important to estimate overall logistics costs, including its various components/elements, so as to understand where problem are and the corresponding solutions. To meet the overall objective of understanding the cost of undertaking logistics in India, Logistics Division, Ministry of Commerce, has commissioned NCAER to undertake interlinked studies with the following objectives: (a) Cost analysis of cargo movement on major routes (Route Study); (b) Estimation of Macroeconomic logistics cost; and (c) A Policy Roundtable among stake-holders

NCAER Project Team:
D.B. Gupta, Sanjib Pohit, Devender Pratap, Sameer Malik, Lavanya Sayal

Sponsored by:
Logistics Division, Ministry of Commerce, Government of India