Digitalize all supply chains to unlock trade efficiencies
In 2018, India was ranked 44th among 160 countries on the World Bank’s Logistics Performance Index, below many of its trade rivals, which points to much scope for improvement.
India aspires for a fast-track growth revival to become a $5 trillion economy by 2024. The Prime Minister, in his call for Atmanirbhar Bharat, envisions India as “a bigger and more important part of the global economy", with policies aiming to make the country efficient, competitive and resilient, as well as self-sustaining. In the age of the fourth industrial revolution, India must digitalize supply chains to reduce inefficiencies, improve transparency, reduce logistics costs, and enhance the overall global competitiveness of Indian industries, especially small and medium enterprises. Given that the logistics cost in India is estimated at around 13% of gross domestic product (GDP), this has been a concern, with both the government and private sector looking for ways to reduce this cost and ensure a smooth supply chain. We are currently witnessing difficulties faced by businesses due to covid-related disruptions. This reiterates the importance of an efficient logistics ecosystem for Indian businesses and the economy to recover from the impact.