Centre announces first mega buyer-seller logistics meet in 2019

Aiming to secure stronger logistics linkages with neighbouring nations and reduce costs, the government will be holding the first-ever major buyer-seller meet in the logistics sector.

The inaugural run of Logix India 2019, set to be held between January 31 and February 2, 2019, is being undertaken by the commerce department and the Federation of Indian Export Organisations (FIEO) as a major initiative to improve the cost-effectiveness and operational efficiency of the sector.

“The cost of logistics in India is a high 14 per cent, whereas in developed economies, it’s nearer 8 per cent. We need to reach that figure,” Ajay Sahai, director-general and chief executive officer, FIEO, said.

India ranked 44 in the World Bank’s Logistics Performance Index 2018. According to the Economic Survey 2017-18, India’s logistics industry is worth around $160 billion and is likely to touch $215 billion in the next two years. The sector provides employment to more than 22 million people and has grown at a compound annual growth rate of 7.8 per cent during the last five years, with future growth estimates pegged at 10.5 per cent over the next five years.

“The industry is facing challenges such as high cost of logistics affecting competitiveness in the global market, underdeveloped material handling infrastructure, fragmented warehousing, and lack of seamless movement of goods across modes, among others,” N Sivasailam, special secretary (logistics), Department of Commerce, said.

BS