In the realm of logistics, industry associations play a crucial role in representing the interests and concerns of businesses operating within the sector. The effective collaboration between industry associations and relevant authorities can significantly contribute to the development and growth of the logistics industry. Recognizing this, the Department for Promotion of Industry and Internal Trade (DPIIT), Logistics Division, encourages industry associations to participate on the E Logs platform and deliberate their issues. This proactive approach aims to address these issues on a fast track mode, aligning with the objectives set forth in the National Logistic Policy. The recent 5th meeting of the Service Investment Group (SIG) held in New Delhi, chaired by Ms. Sumita Dawra, the Special Secretary of DPIIT’s Logistics Division, highlighted the successful resolution of major trade issues.
Meeting the Objectives of the National Logistic Policy
The National Logistic Policy, launched by Prime Minister Shri Narendra Modi on September 17th, 2022, aims to enhance the competitiveness of Indian goods and reduce logistics costs from an estimated 14% of GDP to approximately 8% by 2030. To achieve these goals, the policy emphasizes the need for a comprehensive framework that addresses the concerns of high cost, inefficiency, and various bottlenecks hindering the growth of the sector. One such framework within the National Logistic Policy Industry.jpgis the Service Improvement Framework, which focuses on stakeholder interface and intervention to identify and resolve issues affecting the logistics sector. The SIG, established within the Logistics Division of DPIIT, serves as an instrumental component of this framework.
The Role of the Service Investment Group (SIG)
The Service Investment Group (SIG) acts as a collaborative platform comprising nodal officers from 13 related ministries, including the Department of Revenue, Central Board of Indirect Taxes and Customs, Ministry of Ports, Shipping & Waterways, Ministry of Civil Aviation, Department of Commerce, and NITI Aayog. Under the chairpersonship of Ms. Sumita Dawra, the Special Secretary for Logistics, and with Joint Secretary, Logistics as the designated Member Secretary, the SIG actively engages with registered stakeholders through the E Logs platform. This technological interface enables industry associations to raise issues and pain points that require the SIG’s intervention.
Leveraging the E Logs Platform
The E Logs platform facilitates seamless communication and information sharing between industry associations and the SIG. More than 29 industry and business associations have already been empaneled on the E Logs portal, providing them with user IDs and passwords to directly flag up their issues with the relevant line departments under different ministries. This direct engagement enables a streamlined and expeditious resolution of the concerns raised by industry associations, ensuring their voices are heard and acted upon promptly.
Deliberation and Resolution of Trade Issues
During the 5th meeting of the SIG, the focus was on encouraging the proactive participation of business and industry associations while instilling confidence among them. The meeting deliberated extensively on new issues raised by the industry associations, as well as follow-up actions on previously discussed matters. The discussions revolved around a wide range of concerns, including the reduction of shipping costs, improvement of drafts at major ports for larger vessels, rationalization of shipping costs across all major ports, and acceptance of electronic bills of lading (E-way Bill) by banks. The meeting also addressed issues hindering ease of doing business, such as complex processes, excessive documentation, and the need for digitalization within the logistics sector.
Resolving Long-standing Issues
One significant achievement discussed during the meeting was the withdrawal of priority berthing charges levied by the Visakhapatnam Port Authority (VPA). This decision directly impacts the logistic costs and encourages shipping lines to call at the Visakhapatnam port, benefiting the industry as a whole. The resolution of this long-standing issue through the SIG exemplifies the positive outcomes that can be achieved when industry associations actively engage and deliberate on the E Logs platform.
Strengthening Competitiveness and Economic Viability
To further enhance competitiveness and economic viability, the SIG emphasizes the rationalization of shipping costs at all major ports. By making the ports more competitive, it becomes possible to reduce logistic costs across the country. The meeting also addressed the need to rationalize costs related to major airport terminal operations, which are being privatized. This comprehensive approach ensures that all aspects of the logistics ecosystem are considered, facilitating a sustainable and growth-oriented environment.
