The government will work with the logistics sector to increase trade numbers and address issues

The Commerce Ministry will work with the Express Delivery Sector (EDS) to improve trade numbers and address industry concerns, said RS Subramanian, vice chairman of the Express Industry Council of India (EICI) and senior vice president of DHL Express South Asia.

On April 4th, the EICI released a report with a set of recommendations that can help improve the sector. Union Trade Minister Piyush Goyal had said during his address at the presentation of the report to the Council: “Let’s work together towards a time-bound agreement, where a team from the government and from different segments of the industry will come together in 30 days, will turn the document into a roadmap.” around.”

According to Subramanian, Joint Secretary (DPIIT) Surendra Ahirwar, Department of Trade and Industry, also discussed the issue with the council.

The industry will now work with the government to appoint seven to eight spokespersons from different parts of the express delivery industry. The team will develop an action plan over the next three to six months.

With standard shipping, the regular delivery time is two to eight days, with express shipping, delivery is usually in one day.

The express delivery industry is expected to play a crucial role in fueling India’s growth and helping it become a $17 trillion economy by 2047, Subramanian said.

“The sector has significant links both front and back, from job creation to connecting Indian SMEs to global value chains to bringing a wide range of products to Indian consumers on their doorstep,” he added.

The team formed to support the industry will work to accelerate the growth of the logistics industry, solve infrastructure issues and expand digitization.

“With the help of initiatives like PM Gati Shakti and the national logistics policy, the entire business cycle is being accelerated. Now the load on the delivery cycle has decreased by 60 percent. It used to take 10 to 14 days to sell goods and receive payments, but now it takes four days,” Subramanian said.

The report has cited problems at the municipality/city level, such as differing times for express delivery vehicles to enter different states, the lack of parking spaces for such vehicles, and proposed flexibility in in and out times for freight vehicles and dedicated parking spaces.

The report also talks about the shortage of skilled labor in the EDS segment and suggests that the private and government sectors work together and launch skill programs for EDS.

Lack of integration between systems of different agencies such as GST Network (GSTN), Directorate General for Foreign Trade (DGFT), Special Economic Zone (SEZ) online, Customs, RBI, etc. and limited use of technology by MSME users have also been identified as barriers to the development of the sector.

The report has suggested solutions to improve efficiency, cross-departmental coordination, risk management and data sharing between government and private stakeholders through automation and the use of technology.

The report also suggested that EDS firms and their e-commerce partners should participate in key government initiatives to engage MSMEs and increase their global reach through the use of technology.

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