Logistics index for key export sectors
India is developing its own index to assess the costs of logistics in its top nine export sectors, which include agriculture, leather, apparel and gems and jewellery. The Department of Commerce has commenced an exercise to develop sector-specific indices that will estimate the logistics costs and bring them down to 10% of the gross domestic product (GDP) from 14% at present, which is much higher as compared to benchmarks set by developed countries. The government is also targetting a rank among the top 30 countries on the World Bank Logistics Performance Index. India was ranked 44 on this list from 54 in 2014.
Prof. Manoj Pant, director, Indian Institute of Foreign Trade, commented, “Internationally, no one has made sector-specific indices to estimate logistics costs. We have taken the top exporting sectors and will move on to domestic trade later,” said Manoj Pant, director, Indian
Institute of Foreign Trade (IIFT). The institute is developing the index for the government and is expected to release it early next year.