"India can increase exports by $ 5.5bn by reducing trade costs by 10%"
“Expansion of trade is a key driver of economic growth. While we need timely and cost-effective transportation to support this expansion along with a robust policy, it is also critical to address challenges like inadequate inland infrastructure and indirect and hidden costs”, said Rajeeva Sinha, Co- Chair, CII National Committee on Ports & Shipping.
The study called “Stimulating India’s EXIM Growth” reports that indirect/hidden costs of trade in textiles, pharmaceuticals, electronics and auto components accrued from unreliable transport services and regulatory/bureaucratic delays are as high as 38-47% of the total logistics cost. A 10% reduction can boost India’s competitiveness and contribute additional revenues of up to US $ 5.5 billion annually.
The findings were released at a cross-industry seminar where Rajive Kumar, Secretary Shipping and A K Bhalla, Director General of Foreign Trade were present.
“Our study analyses just how much socio-economic value could potentially be generated if India improves trade efficiency. Going a step further, we have identified segments where companies experience the most delays and also collaborated with business leaders to identify specific solutions to address these challenges most effectively,” Rajeeva Sinha, Co- Chair, CII National Committee on Ports & Shipping said.
“The outlook for global trade in 2017 remains weak. Real growth is expected between 1% and 2%. India has the opportunity to improve its share of global trade, especially in exports, through increased competitiveness and be probably the only country to deliver nearly double-digit growth in container trade this year. Reducing costs by a fourth can substantially boost exports in just these sectors. But the solutions identified have the potential to benefit all export sectors and create a multiplier effect,” said Franck Dedenis, Managing Director – India, Bangladesh & Sri Lanka Cluster, Maersk Line.
source: hellenicshippingnews.com
