GS 3: Economy | Infrastructure: Energy, Ports, Roads, Airports, Railways etc.
Why in News?
- Union Minister of Commerce and Industry and Civil Aviation, Suresh Prabhulaunched the logo and brochure of ‘Logix India 2019’.
- Logix India will enable effective international trade logistics and help provide efficient and cost-effective flow of goods on which other commercial sectors.
Logix India 2019:
- The logistics event is being organized by the Federation of Indian Export Organisations (FIEO) as a major initiative to improve logistics cost effectiveness and operational efficiencies for India’s global trade.
- Over 20 countries are sending delegations to explore logistics partnerships with India and FIEO is focusing on logistical solutions for difficult to reach markets.
- Over 100 international delegates are expected to attend Logix India 2019.
- FIEO will also focus on investment opportunities in infrastructure development, warehouse consolidation, technology integration and IT enablement and skilling of manpower at the three-day meet.
- Logix India will enable effective international trade logistics and help provide efficient and cost-effective flow of goods on which other commercial sectors depend.
India’s Logistics Sector:
- India ranked 44 in the World Bank Logistics Performance Index 2018.
- As per the Economic Survey 2017-18, India’s logistics industry which is worth around USD 160 billion is likely to touch USD 215 billion in the next two years.
- This sector provides employment to more than 22 million people and is expected to grow at the rate of 10.5 per cent over the next 5 years.
- Considering the need for India to have more robust trade relations with countries in Africa, Latin America, Central Asia, Middle East and ASEAN, Union Minister of Commerce and Industry is working on an integrated logistics strategy.
- The need for integrated Logistics sector development has also been felt for in view of the fact that the logistics cost in India is very high compared to developed countries.
- High logistics cost reduces the competitiveness of Indian goods both in domestic as well as export market.
- Logistics is the backbone of EXIM trade and creates business opportunities and employment. Logistics sector is expected to grow to USD 360 billion by 2032 from the current USD 115 billion.