Secondary data on India’s logistics cost estimation components absent

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Secondary data at a disaggregated level on most components of logistics cost estimation, including costs related to transportation, warehousing, storage, auxiliary support services, packaging, insurance and other administrative operations, is not available in India, according to a recent report by the department for promotion of industry and internal trade (DPIIT).

Lack of data in public domain for the critical components of logistics cost implies that unofficial and floating estimates of India’s logistics cost lack credibility, Sumita Dawra, special secretary in DPIIT’s logistics division said at the launch event of the report, titled ‘Logistics Cost in India: Assessment and Long-Term Framework’.

Secondary data at a disaggregated level on most components of logistics cost estimation is not available in India, according to a recent report by the department for promotion of industry and internal trade.
Lack of data in public domain for the critical components of logistics cost implies unofficial and floating estimates of the cost lack credibility.

Logistics cost has serious implications for the country’s manufacturing sector, export competitiveness and global ranking, she added.

The report has been prepared by the National Council of Applied Economic Research (NCAER) with guidance from the Asian Development Bank experts.

It presents a baseline aggregated logistics cost estimate and a framework for long-term logistics cost calculation.

It recommends a hybrid approach using primary (covering all trade flows, product types, industry trends, etc.) and secondary survey data, as well as real-time big data to provide an estimate of logistics cost.

To ensure evidence-based decision making for improving logistics efficiency, logistics costs should be estimated on a regular basis, preferably on an annual basis, the department said in a release.

This requires institutionalising the process of data collection in a systematic and periodic manner, for which a memorandum of understanding with NCAER is planned.

Fibre2Fashion News Desk (DS)


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