New Delhi [India], July 10 : Rajesh Agrawal, Special Secretary, Department of Commerce, emphasised the significance of India's ongoing and past Free Trade Agreement (FTA) negotiations in enhancing India's participation in global value chains (GVCs).
Speaking at a conference on export logistics organised by the Confederation of Indian Industry in the national capital on Thursday, the special secretary asserted that identifying gaps in multimodal transportation and bringing all stakeholders together will reduce logistics costs, driving exports and growth in India's economy.
In another suggestion, Agrawal mentioned that there is a need for more air cargo space, port space, rail and road space, in addition to enhancing cold chain logistics in India's agriculture sector.
He also highlighted that to achieve net zero by 2027, there is a need to ensure that logistics are sustainable, with a minimum carbon footprint.
For India to become the third-largest economic power, the country needs to increase its exports, and shipping and waterways will play a crucial role in enhancing these exports, said Shantanu Thakur, Minister of State for Ports, Shipping, and Waterways.
The minister emphasised that equal and balanced focus on the development of each sector is crucial; priority must be given to enhancing the value of India's products to the world.
Minister Thakur emphasised that reducing the turnaround time for transporting goods from one state to another is of paramount importance.
The use of artificial intelligence is an imperative for the deeper development of the shipping and logistics sector. As 70 per cent of trade happens through shipping, there is a need for vast development of the shipping industry, the minister suggested.
He also mentioned the need for improved communication to establish a robust connectivity infrastructure, spanning from the northeast region to the northwest part of India, encompassing both first-mile and last-mile connections.
During the logistics-focused event, Vijay Kumar, Chairman, Inland Waterways Authority, deliberated on India's transformative journey and the role of Inland Waterways in actualising India's ambitious goal of achieving USD 2 trillion in exports by 2030, and net zero emission target by 2070.
"If the cost of logistics has to be brought down to single digits, we have to meet the twin goals of economy and sustainability, then inland waterways transport is the solution," Vijay Kumar further added.
Vijay Kumar also highlighted crucial steps taken by the government to address major industry issues, including water availability and draft variability, emphasising the importance of multimodal connectivity and cargo aggregation hubs in reducing first-mile and last-mile costs.
B Thiagarajan, Chairman, CII Trade Fairs Council and CII National Committee on CSR and Managing Director, Blue Star Limited outlined that to boost exports, industry must embrace technology and automation and encourage shift from road to rail and waterways.
He advocated for investment in green warehousing, energy-efficient flight systems, and fostering collaborative platforms between manufacturers, logistics providers, and government authorities.