MMLPs are aimed at reducing India’s logistics costs from the current about 14% of GDP to less than 10%, on a par with global standards.
NEW DELHI : If there is any factor that puts India high on the unease of doing business index, it is logistics. The movement of goods through this vast country is expensive and inefficient. The overall logistics cost is about 14% of GDP, significantly higher than that of many other countries. Transporting goods by rail costs 45% less (on a per tonne, per km basis) compared to road, but three-fourths of all goods are sent across the country by road because of the inefficiencies in rail transport. The government has come up with one answer to this problem—a network of multi-modal logistics parks (MMLPs). So, where are these parks coming up? How ambitious is this plan? And what stands in the way?