India needs lower logistic cost for global competitiveness
BUSINESS ECONOMICS|August 16-31, 2019

In India, logistics cost, in average, is much higher as compared to many other economies.

Kishore Kumar Biswas

India’s flagship programme ‘Make in India’ cannot be successful if its logistics industry remains weak. Movement of goods in production involves a certain logistic cost. The more the logistic cost, higher is the price of a product.

A few months ago, Suresh Prabhu, Minister of Commerce, Government of India, reportedly said in a logistics conference that India had one of the highest logistic costs in the world. Ranked 44th in the World Bank’s Logistics Performance Index of 2018, logistics costs in India were 13-15 % of the production cost, while the global average was around 6%. In an investors’ meeting held in Kolkata a few months ago, many steel experts emphasised that for India to be globally competitive in production of goods (especially steel), its logistics sector needs to be more efficient. Some experts pointed out that the steel sector in India is not globally competitive due to its high logistical bearings. Sometimes, this cost climbs up to 45- 50% of the factory production cost.

India is dependent on imported coking coal. Import of normal coal also has been growing. These are to be transported from ports to the factories. This involves huge costs and multiple loading and unloading expenditures. Additionally, transportation of iron ore from mines to the factories is also costly. Logistics costs are also involved for many other inputs of steel production.

Continue reading your story on the app

Continue reading your story in the magazine

MORE STORIES FROM BUSINESS ECONOMICSView All

IT sector boosts employment after sluggish growth

India is the largest off-shoring destination for Information Technology (IT) companies across the world.

3 mins read
BUSINESS ECONOMICS
January 16-31, 2020

Indian handicrafts need new vision to compete globally

High-quality handicraft goods

10+ mins read
BUSINESS ECONOMICS
January 16-31, 2020

AHSI hosts Bicentennial Flower Show and World Regional Rose Convention 2020

The Agri Horticultural Society of India (AHSI) recently celebrated its bicentenary year by hosting the Bicentennial Flower Show and the World Regional Rose Convention 2020.

2 mins read
BUSINESS ECONOMICS
January 16-31, 2020

Threat Of A Third World War?

Renewed tension in West Asia forebodes a troubled 2020.

3 mins read
BUSINESS ECONOMICS
January 16-31, 2020

Railways Financial Stress: Is Economic Slowdown The Main Reason?

The Indian Railways (IR) has been going through a rough financial patch for the last few years.

4 mins read
BUSINESS ECONOMICS
January 16-31, 2020

US-Iran Hostility: India Feels Heat Of Crude Oil Price Hike

The geopolitical tension triggered by the killing of Iranian Islamic Revolutionary Guards Corps’ (IRGC) top military leader Qasem Soleimani and the subsequent retaliatory missile attacks on American military bases in Iraq by Iran has brought many countries including India to the edge.

3 mins read
BUSINESS ECONOMICS
January 16-31, 2020

Landmark Judgements To Stop Animal Cruelty

Some of our judges are now beginning to understand what animal cruelty does to a nation and act on it.

4 mins read
BUSINESS ECONOMICS
December 1-15, 2019

Opportunities And Challenges In The Aviation Sector

The Bharat Chamber of Commerce organised a national seminar and an exhibition on the ‘Indian Aviation Sector: Opportunities and Challenges’ at the Park Hotel, Kolkata. The prospects of private participation in maintenance, overhaul, and repair were discussed.

2 mins read
BUSINESS ECONOMICS
December 1-15, 2019

India Needs To Learn A Lesson From Brexit

The verdict given by the people of the United Kingdom in 2016 in favour of quitting the European Union (EU) is popularly known as ‘Brexit’. People who voted for Brexit argued that it was because of the adoption of erratic neo-liberal policies that had led to livelihood crises.

3 mins read
BUSINESS ECONOMICS
December 1-15, 2019

US-China Trade War Continues: Global Implications

The ongoing US-China trade war had its origin in 2012. It began then as a “cold war”, well before Donald Trump became the US President.

3 mins read
BUSINESS ECONOMICS
December 1-15, 2019
RELATED STORIES

Women & Spirituality

MIRABAI BUSH is the author of Working With Mindfulness, co-creator of Google’s “Search Inside Yourself” program, cofounder of the Center for Contemplative Mind and Society and a founding board member of the Seva Foundation. She teaches contemplative practices, and has facilitated retreats, workshops and courses on spirit and action for over 20 years. To commemorate International Women’s Day, Mirabai spoke with PURNIMA RAMAKRISHNAN on March 6, 2021.

10+ mins read
Heartfulness eMagazine
May 2021

Reincarnation And Realpolitik

China, India, and the U.S. are vying to influence the selection of the next Dalai Lama

5 mins read
Bloomberg Businessweek
April 19, 2021

An Exclusive Interview With Nandakumar Narasimhan

The Little Red Train

10+ mins read
Lens Magazine
March 2021

A Room for Dad

Before Mom passed, I made a promise to her

8 mins read
Guideposts
April 2021

THE DANGAL IN THE JUNGLE, PART 1

YOU KNOW YOU’RE SOMEBODY WHEN YOU’VE APPEARED ON AN INDIAN DANGAL POSTER — IN OTHER WORDS, IN A WRESTLING ADVERTISEMENT.

6 mins read
Black Belt
April/May 2021

WOUNDS AND THE WOMB

JULIE PETERS explores how to heal a relationship with the sacred womb, a place of death, life, and possibilities.

8 mins read
Spirituality & Health
Mar/Apr 2021

BE SQUIRRELY

Giant squirrels, giant lessons? Animal chaplain SARAH BOWEN explores what squirrels can show us about mindfulness.

4 mins read
Spirituality & Health
Mar/Apr 2021

E8 Caste and the Indian Tech Ivies

IIT grads are highly sought after in Silicon Valley. Are they bringing deep-rooted prejudices with them?

10+ mins read
Bloomberg Businessweek
March 15, 2021

Life Changing

I was happily married, happily employed, just plain happy. Until the accident

8 mins read
Guideposts
February 2021

IN SEASON Chickpeas (GARBANZO BEANS)

Chickpeas appear in early recordings in Turkey well over 5000 years ago. India produces the most chickpeas worldwide but they are grown in more than 50 countries. An excellent source of carbohydrates, protein, fiber, B vitamins, and some minerals, they are a nutritious staple of many diets. The name chickpea comes from the Latin word cancer, referring to the plant family of legumes, Fabaceae. It is also known by its popular Spanish-derived name, the garbanzo bean. Kidney beans, black beans, lima beans, and peanuts are other familiar foods found in this legume family.

1 min read
Alternative Medicine
February 2021