Cargo and logistics industry in India is apparently heading towards a great leap forward thanks to serious intervention and initiatives from government of India partnering with industry stakeholders. After the recently organised first international logistics summit by Federation of Freight Forwarders Associations’ in India (FFFAI) in New Delhi in presence of more about 1200 foreign and Indian delegates, the city will witness another international logistics event (buyer-seller meet) to be organised by the Federation of Indian Export Organisations (FIEO). Significantly, in both cases Government of India has taken the active role to promote India as an attractive place for global manufacturing and logistics professionals. At a curtain raiser event organised in New Delhi on November 27, FIEO has announced that in association with the Ministry of Commerce it would host the first annual “Logix India” from January 31 to February 2, 2019, where more than 100 overseas delegates would be invited from 20 countries to interact with their future business partners in India. Target countries include ASEAN, CIS, Middle East, Central Asia, Africa and Latin America.
Present at the curtain raiser programme to unveil the Logix India logo, Mr Suresh Prabhu, Commerce & Industry and Civil Aviation Minister said that India is now one of the fastest growing economies of the world, and is seeking superior logistics linkages with nations all over the world. Key objective of this event would be promote brand India and huge business potential for manufacturing, logistics and export industry. Logistics and infrastructure capacity building would be another aspect of organizing this event. “India is now one of the fastest growing economies of the world, and is seeking superior logistics linkages with nations all over the world. Logix India will enable effective international trade logistics and help provide efficient and cost-effective flow of goods on which other commercial sectors depend upon.” said Mr Prabhu.
Also present on this occasion to elaborate on the importance of Logix India were Mr N. Sivasailam, Special Secretary (Logistics), Department of Commerce; Mr Ganesh Kumar Gupta, President FIEO and Mr Ajay Sahai, DG & CEO, FIEO. According to Mr Sivasailam; who recently joined Ministry of Commerce with huge experience working in Ministry of Communications, logistics is the backbone of the export sector, and the industry is facing challenges such as high cost of logistics impacting competitiveness in global market, underdeveloped material handling infrastructure, fragmented warehousing and lack of seamless movement of goods across modes, among others. Hence, need is to go for tremendous development in this sector embracing modern technology. He also informed that the Ministry of Commerce would soon launch a logistics portal for the benefit of Indian exporters, logistics companies as well as end customers.
Commending the present government’s initiatives regarding growth of export and logistics infrastructure FIEO President Mr Gupta added, “Further development of global logistics would give a boost to external demand thereby encouraging manufacturing and job creation. This will in turn be instrumental in improving country’s GDP.”
Mr Sahai highlighted the facts that despite severe challenges persisting in the international market Indian exporters remained capable in increasing exports from the country. He is confident that India would reach its set export target, both in short and long terms, provided there are conducive logistics facilities and competitive logistics cost. Mr Sahai underscored that 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 now is likely to touch USD 215 billion in the next two years. Other studies also suggest that it would reach to USD 360 billion by 2032.The sector provides employment to more than 22 million people has grown at a compound annual growth rate (CAGR) of 7.8 per cent during the last five years and will grow at a CAGR of 10.5 per cent over the next 5 years. “FIEO will also focus on Investment opportunities in Infrastructure development, warehouse consolidation, technology integration and IT enablement, skilling of manpower etc. at the three day meet,” Mr Sahai shared.