Associated Chambers of Commerce and Industry of India has said that logistics and transportation bottlenecks are impacting the country’s economic growth by about 2%.

It said that “Currently the ports, shipping and maritime logistics are highly fragmented and affecting the growth to the extent of 2% of the GDP on account of logistics and transportation bottlenecks.”

Dr Swati Piramal president of ASSOCHAM said that about 90% of the country’s export-import cargo, including strategic shipments, is carried by foreign flag vessels.

She added that “This puts the country in a precarious situation, as bulk of our essential supplies like oil is carried on foreign flag vessels. This is a vulnerable position, as there exists scope for leaving India’s strategic supplies at the risk of an abrupt stoppage in case of any eventuality.”

It also said that the complicated, lengthy and cumbersome customs procedures are resulting in higher transaction costs.

The chamber has asked the Government for the formulation of a comprehensive policy for the development of the transportation and logistics sector.

(Sourced from PTI)