Logistical Issues

Better logistics is a prime requirement of a modern economy with a complex supply chain. India has one of the least efficient logistics in the world. How to improve logistics in India? Discuss. (200 Words)

India has one of world’s underdeveloped logistics systems which is laced with delays, regulations, high costs. For instance, a vehicle in the US covers four times the distance done so by their Indian counterparts. Logistics can be improved in the following ways:
TOLL COLLECTION: Electronic Toll collection (ETC) should be introduced. Slowing the vehicle each time to pay tolls is a time consuming process and creates congestion on roads. ETC will ensure that tolls can be collected without slowing down. (Nandan Nikealni Committee recommendations)
ROAD PERMIT: Standardising road permit forms across states and relaxation of requirement of road permit for outward transportation is needed. This will prevent delays across borders which are estimated to constitute almost half of total delays.
INFRASTRUCTURE: Infrastructural development like building of better roads, bridges, tracks can ensure speedy delivery of goods.
TRANSPARENCY: Monitoring mechanisms like a mobile app with enabled GPS tracker to ensure real time monitoring of consignments of goods will ensure transparency.
TIR CONVENTION: Adoption of the TIR (International Road Transport) convention. Under this, a vehicle remains sealed throughout the journey, and is rarely checked. Consignments are sealed at origin by Customs authority. The registered vehicles receive Blue and white plates , and a TIR carnet which serves as document and proof of guarantee.
RAILWAYS: Along with roads, more stress on railway transport through cheaper freight rates, timely deliveries can be promoted. The railway sector remains underutilized for logistics. It is cheaper and more time saving than roads
The implementation of the above steps along with proper interstate and Centre-state coordination will ensure robust logistics system essential for development of our country.



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