Logistics sector to see $500 billion investment by 2025: Suresh Prabhu

India is now being looked upon as one of the most appropriate destinations for manufacturing and service locations by many of the foreign companies, the minister said.

The investment in logistics, including infrastructure, will touch $500 billion by 2025, said Union Minister of Commerce and Industry Suresh Prabhu on Monday. He said the sector will create millions of jobs and also do away with the hurdles hampering India’s internal and global trade.
 
India is now being looked upon as one of the most appropriate destinations for manufacturing and service locations by many of the foreign companies, the minister said. 
 
"Further, initiatives like digital India, make in India, skill India have added a boost to the sub-continent's vast pool of resources, cost-efficient environment and skilled workforce."
 
During recent years, Indian government has taken many measures to improve the trade performance through efficient and effective logistics. 
 
The measures include smoothening of the border and cross border documentation and activities, dedicated freight corridors, investments in port and other infrastructures, alignment of all business processes, thus, attempting to improve logistics performance of the country.
 
The minister said logistics wing has been created in the Department of Commerce for the integrated development of this sector. "Due to these efforts, infrastructure status has been granted to warehousing, cold chains and multimodal logistics parks." 
 
The ministry is working on a National Logistics Policy and also bringing out a policy on the development of multi-modal logistics parks (MLPs) to be announced soon. 
 
Further, the minister said that the cost and speed of logistics, at present, is hindering the market share that Indian products deserve. 
 
Hence, in order to solve these issues in an integrated and holistic way, the government has given mandate to the Centre for Trade Facilitation and Logistics (CTFL) to prepare a plan and bring together industry, academia, governments and organisations of national and international level, to work on the key supply chain and logistics, management challenges facing firms in the globalised environment.
 
The objectives of CTFL are also to train and build the required human resource skills through appropriate training and academic programmes and create a cadre of trade facilitation and logistics management experts/professionals; to impart training to government officials who are working in the logistics and trade facilitation sectors.
 
Prabhu said the ministry has agreed to provide a block one-time funding support of Rs 80 lakh towards initial infrastructure and a phase-wise support of Rs 339.90 lakh for four years. 
 
The minister also released the logo of logistics division. It is a graphic symbol representing a pair of swans who are known for their ability to travel long distances and are comfortable in the sky, water and on earth and represents team work, synergy and coordination between various partners involved in logistics. 
 
In pics (Source: PIB): Department of Logistics and IIFT signed an MoU in the presence of Suresh Prabhu on Monday.
Story source: PIB

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