According to Piyush Goyal, minister of commerce and industry, India can save Rs 10 lakh crore annually if it can reduce logistic expenses by 4-5 percent under the PM Gati Shakti-National Master Plan for Multi-model connectivity
According to Goyal, the cost of logistics in the nation is currently between 13 and 14%. In the upcoming years, India wants to reduce the logistic cost by 4% to 5%. India would save almost Rs 10 lakh crore a year thanks to it. With the help of PM Gati Shakti, India is enhancing last-mile connectivity, bridging infrastructure gaps, and finishing infrastructure projects quickly. If logistics costs can be reduced from 13–14% to a single digit or 4-5%, India can save Rs 10 lakh crore yearly. Goyal continued by saying that in order to achieve the goal of having a $30 trillion economy by 2047, logistical costs must be brought down. One can only image the amount of money India would save by lowering this logistical expense. Additionally, by finishing the infrastructure projects of the federal government and the states, they may avoid incurring additional costs, which will lower the cost of infrastructure by thousands of billions of rupees. The prime minister has the ambition to turn India into a global force. The Minister expressed certainty that PM GatiShakti NMP will go down in history as a significant initiative that sparked the nation’s quick growth and development. Everyone sees Prime Minister GatiShakti as doing the country and society a favor, Piyush said.
Piyush Goyal will look to make sure these logistic costs gets reduced sooner rather than later
Goyal presented a report on the ranking of states earlier in the programme. Andhra Pradesh, Assam, and Gujarat are three of the 15 states and UTs included in the study as achievers in the logistics index chart for 2022. The index measures the effectiveness of the logistical services required to encourage exports and economic expansion. The other states listed in the ranking as rapid movers include Kerala, Madhya Pradesh, Rajasthan, Puducherry, Sikkim, and Tripura. Bihar, Chhattisgarh, Goa, and Mizoram are among the 15 states and UTs that made the list in the category for aspirants. According to the fourth LEADS (Logistics Ease Across Different States) 2022 report, which was released by Commerce and Industry Minister Piyush Goyal, the report ranks the states according to their logistics ecosystem, highlights the major logistics-related challenges faced by the stakeholders, and includes suggestive recommendations. The index intends to increase the focus on strengthening the performance of logistics across states, which is crucial for enhancing the nation’s commerce and lowering transaction costs. In 2018, the initial logistics report was published. Due to the COVID-19 epidemic, there was no ranking last year. Both the rating rankings for 2018 and 2019 have Gujarat at the top.