GatiShakti is well-developed Logistics and Supply Chain network to boost India's economy: MoS Commerce

NEW DELHI : PM GatiShakti aims to build a well-developed logistics and supply chain network, which will allow goods to flow seamlessly across borders and increase access to global markets, said Mr. Shri Som Parkash, Union Minister of State for Commerce & Industry at the National Conference on Gati ShaktiBoosting connectivity for New India: Logistics – Warehousing - Supply Chain" organised by the Associated Chambers of Commerce and Industry of India(ASSOCHAM).

While addressing the conference Mr.ShriSomParkash, Union Minister of State for Commerce & Industry, Government of India said that states/ Union Territories of the country are extensively using the PM GatiShakti approach for planning connectivity to Industrial Regions; for deciding on location of social infrastructure assets, such asschools,hospitals,etc.

ShriParkashcomplementedPMGatiShaktiNMP,National Logistics Policy that aims to bring efficiency in logistics services and human resources. The Policy aims to reduce the cost of logistics, improve India’s ranking in Logistics Performance Index, enabling data-driven decision support mechanismforanefficientlogisticsecosystem.

This is a strong indicator of India’s global positioning, with this development being powered by our government’s laser focus on reforms for improving logistics infrastructure through PM GatiShakti and National Logistics Policy,” he said.

Mr Rajesh Pandit, Managing Director, GWS India, PM - India, Middle East, Southeast Asia and North Africa, CBRE said "As the Gati Shakti Master Plan unfolds, its core focus on enhancing logistical efficiency and strengthening connectivity is expected to drive strategic growth nationwide. Subsequently, as logistics infrastructure improves, there will be a surge in demand for warehousing, distribution centers, and industrial parks, presenting compelling opportunities for mixed-use developments and retail spaces. The plan's concerted efforts to enhance multi-model connectivity will unlock the untapped potential, fostering inclusive economic growth and propelling India towardsapromisingfuture.

Beyond its transformative impact on infrastructure and logistics, the Gati Shakti Master Plan also holds the potential to significantly increase employment opportunities across the country. As the plan forges ahead, CBRE, wholeheartedly supports the Government's Gati Shakti initiative and iscommittedtocontributingtoitsresoundingsuccess”.

ShriYuvrajSharma,ClusterHead–Sales&Marketing India, Sri Lanka and Maldives, Kuehne+Nagel Group stated Indian logistics market is expected to be close to $425 million and a growth with 8.5% rate in the next 17 years. He highlighted that the Biggest superpower under GatiShaktiarevisibilityofcargoandwaterwaynavigation.

Lt. Col. Jitender Yadav, Founder, Pragati Group said India has risen 6 points in world logistics performance index. Point of concern of the logistic course is that it is 15% higher comparatively to a developed nation with 7-8 %. Warehousing sector development faces problems like land acquisition and landcosts.

Mr. Christian Kapfensteiner, Director, Sustainable Urban and Industrial Development, Deutsche Gesellschaft für technische Zusammenarbeit (GIZ) GmbH, India said multi model connectivity should be implemented to develop infrastructure to reduce logistics cost. Larger focus should be on Digitalization, Connectivity, Delivery Time, Tax incentives, and Skill development to sustainthesector.

A joint Knowledge report was released by ASSOCHAM and CBRE by eminent dignitaries and industrialists on the themeGatiShakti:BoostingConnectivityforNewIndia.

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Addressing the ‘FICCI Warehousing and Supply Chain Summit’, Ms Dawra stated that the logistics and warehousing industry will have to play a pivotal role to help achieve the larger objective of the PMGS-NMP which is focussed on making India a developed economy by 2047. “Better warehousing not only makes the manufacturing sector more efficient but also brings more investments, makes supply chain more resilient and generates more economicvalue,”sheadded.

Ms Dawra also alluded to various Government initiatives like PM Gatishakti, digitalization, big data analytics and multimodal logistics parks to support the industryinitsendeavourtobegloballeader.

Citing the example of Jogighopa multimodal logistics park (MMLP) situated at the banks of Brahmaputra in Assam, Ms Dawra talked about how different forms of transport i.e., railways, highways and waterways are being utilized in bringing efficiency in logistics, reduce travel time andsavecosts.

MrAmitKumarSingh,ManagingDirector&Director (M&CP), Central Warehousing Corporation said, "Cost effectiveness, reliability, resilience and sustainability arethefoundingstonesofanyefficientsupplychain.Indiahas done a fairly good job in creating warehouses for foodgrains; however, we still lag in developing warehousing for other sectors. The domestic warehousing sector is scattered and therefore it is very difficult to bring any standardization. There is a huge opportunity of consolidation and standardizationinthedomesticcargoindustry.”

Mr T K Manoj Kumar, Chairman, Warehousing Development and Regulatory Authority (WDRA) said, "Standardization and digitalization will carve out definitive solutions most of the problems faced by the warehousing industry in the country. The logistics policy of the Government of India has clearly defined the goals for the industry. WDRA is gradually working towards bringing uniformity and digitalization in the Indian warehousing industry.”

Mr Sachin Bhanushali, Advisor, FICCI Logistics Committee & Former CEO Gateway Distriparks Ltd said, “The cost of logistics is a huge concern for the Indian industry; however, the reliability of the logistics is an equally big concern. Railways can play an important role in bringing down the logistics costs in the country. It is time to adopt transformative approach to do the logistics and warehousingbusinessinthecountry”,headded.

"Logistics managers are concerned about the reliability inthedeliveryoftherawmaterialsandgoods.AlthoughGST has practically removed the interstate borders in terms of taxation,somemorechangesarerequiredontheregulatory side and the methodology in which the industry operates,” headded.

During the event, FICCI-Grant Thornton Knowledge Report titled Evolving Landscape of Warehousing and Logistics in India: A road to becoming third-largest economy by 2027 was released. The report assesses various logistics and warehousing market trends and key policies thatarehelpingtodefinetheindustryandthedevelopments anticipatedintheforthcomingperiod.