The commerce and industry ministry has proposed creation of a separate department for trade facilitation and logistics for better coordination among different government agencies. At the moment, there is no single department to look at all the aspects related to logistics covering various modes of shipment such as sea, roads and railways.
The proposal is part of new government's 100-day action plan prepared by the Department for Promotion of Industry and Internal Trade (DPIIT), an arm of the ministry, which will take office on May 30. Creation of a separate department for trade facilitation and logistics will result in better coordination. At present, a logistics division is functioning under the department of commerce and headed by a special secretary-level officer.
Logistics is a key component for increasing competitiveness of exporters and domestic traders by reducing transport cost and time, and expediting smooth movement of goods. The sector needs lot of coordination among different ministries and departments including railways, road and shipping. In January 2019, Economic Advisory Council to the Prime Minister (EAC-PM) has suggested setting up a separate logistics department and introducing one permit-one tax system for trucks, among other measures, to boost the transport sector and improve ease of doing business.