By IANS,
New Delhi : The Associated Chamber of Commerce and Industry of India (Assocham) Friday said the insufficient logistical and transport infrastructure is impacting the growth of the country by two percent of Gross Domestic Product (GDP).
“The ports, shipping and maritime logistics (PSML) are highly fragmented and affecting the growth to the extent of 2 percent of the GDP,” the chamber said in a statement.
According to the Assocham, the current policies in this sector are complicated, lengthy and cumbersome customs procedures which result in higher transaction costs.
“Logistics cost in India is over 13 percent of its GDP, making India uncompetitive at the international markets due to under-developed trade and poor logistics of the country,” Assocham president Swati Piramal said.
The chamber also noted that about 90 percent of export-import cargo of the country, including that of its strategic cargoes like oil is carried by foreign flag vessels.
“This is a vulnerable position as there exists scope for leaving India’s strategic supplies at the risk of an abrupt stoppage in case of any eventuality,” statement said.
The industry body also observed that for enhancement of foreign trade and better transportation at reduced cost, new policies for land acquisition, for industry near ports and for logistical and infrastructure facilities are required.