India’s supply chain and logistics sector, one of the largest globally and worth $215 billion growing at a CAGR of 10.5 percent, faces several barriers to growth despite its criticality to the economy. An unbalanced logistics modal mix, high indirect costs, fragmented infrastructure and networks, and limited technology adoption has been hampering the sector’s growth.
To bridge the current competitiveness gap of $180 billion, India needs to reduce logistics cost from 14 percent of GDP to 7 percent, said Barnik Chitran Maitra, Managing Partner of the management consultancy firm Arthur D Little India and South Asia and lead author of a report ‘Reimagining India’s supply chain: A bold vision for 2030’. The report by the firm and the Confederation of India Industry highlights the need for immediate attention given the high logistics cost of 14 percent of GDP in India compared to 8-10 percent of GDP in the US and Europe.
The report brings to light these issues, sets a bold Vision 2030, and lays the roadmap for ensuring the global competitiveness of India’s supply chain. It was released by Pawan Kumar Agarwal, Special Secretary (Logistics), Government of India, at the CII National Packaging Conference on Friday.
The report details the improvements needed to make India’s supply chain competitive. It provides a glimpse of learnings from around the world, presents five imperatives for the Indian supply chain, and sets aspirations to achieve Vision 2030. It also brings to light the vulnerabilities that the supply chain network is exposed to if transformative actions are not taken.
Source: The Hindu Business Line
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