Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution, and Textiles, Sh. Piyush Goyal released the 'Logistics Ease Across Different State (LEADS) 2023' report in New Delhi on 16th December 2023, in the presence of Smt. Sumita Dawra, Special Secretary (Logistics), DPIIT, Mr. Sajiv Puri, President-Designate of Confederation of Indian Industry (CII) & MD ITC, and Mr. Mihir Shah, Partner, Ernst & Young.  

 

Speaking on the occasion, Sh. Piyush Goyal said that LEADS is giving insights to States and UTs for further revolutionary reform in logistics sector, taking us towards our vision of Viksit Bharat. The report serves as a guide for stakeholders in the Logistics Sector by providing strategic insights, he added. He hoped that it will play a pivotal role in instilling healthy competition among States/UTs to enhance logistics performance. It also underscores notable initiatives like planning infrastructure on PM GatiShakti, ‘industry’ status for logistics, multimodal connectivity, digital initiatives in logistics, City Logistics Plans, Multimodal Logistics Parks, etc, he said, adding that States/UTs need to emphasise skill development, capacity building, and the formalization of logistics policies, implementation of monitoring frameworks, and the promotion of green logistics. He said that Logistics sector will be a cornerstone in our endeavour to take India to a 10 fold growth from a USD 3.5 trillion to USD 35 trillion by 2047.

 

Sh. Rajesh Kumar Singh, Secretary. DPIIT stated that leveraging digitization will lead to significant reduction in logistics cost. In the last nine years, significant interventions in critical areas like logistics received the much-needed focus, thereby leading to the growth in the logistics sector. Secretary highlighted reforms in Ease of Doing Business, reduction in compliance burden and ongoing work on reducing cost of regulation.

 

Senior officials from the Central and State/UT governments and representatives from the industry were present at the launch to share their insights and engage in constructive dialogues during various sessions in the day.

 

LEADS was conceived on the lines of Logistics Performance Index of World Bank in 2018 and has evolved over time. While the LPI relies entirely on perception-based surveys, LEADS incorporates both perception as well as objectivity thereby enhancing the robustness and comprehensiveness of this exercise.

 

The 5th edition of the LEADS annual exercise - LEADS 2023 report, provides insights into improvement of logistics performance at State/UT level. It highlights an enhanced overall stakeholder perception and impact of various reforms, across States and UTs. This report, signalling a positive shift in States’ performance across the key pillars – Logistics Infrastructure, Logistics Services and Operating and Regulatory Environment, empowers the State/UT Governments by providing region specific insights for informed decision making and comprehensive growth.

 

This report is based on a pan-India primary survey, conducted between May and July 2023, covering over 7,300 responses across 36 States/UTs. Additionally, over 750 stakeholder consultations, facilitated by National, Regional, and State Associations, significantly contributed to this comprehensive evaluation.

 

Performance Highlights from LEADS 2023:

 

Coastal Group

 

Achievers: Andhra Pradesh, Gujarat, Karnataka, Tamil Nadu

Fast Movers: Kerala, Maharashtra

Aspirers: Goa, Odisha, West Bengal

Landlocked Group

 

Achievers: Haryana, Punjab, Telangana, Uttar Pradesh

Fast Movers: Madhya Pradesh, Rajasthan, Uttarakhand

Aspirers: Bihar, Chhattisgarh, Himachal Pradesh, Jharkhand

North-East Group

 

Achievers: Assam, Sikkim, Tripura

Fast Movers: Arunachal Pradesh, Nagaland

Aspirers: Manipur, Meghalaya, Mizoram

Union Territories

 

Achievers: Chandigarh, Delhi

Fast Movers: Andaman & Nicobar, Lakshadweep, Puducherry

Aspirers: Daman & Diu/ Dadra & Nagar Haveli, Jammu & Kashmir, Ladakh

Ms. Sumita Dawra, Special Secretary (Logistics), DPIIT highlighted that the 5th edition of the LEADS report launched today has been developed in a collaborative and consultative manner. It has brought objectivity in assessment of infrastructure development and process-related reforms. 23 States/UTs have also notified their State Logistics Polices to align with the National Logistics Policy. Further, 16 States/UTs have given industry status to logistics. Digital reform such as PM GatiShakti, Logistics Data Bank, Unified Logistics Interface Platform (ULIP), GST are propelling India’s improved ranking at global level.

 

During the event two sessions were held: (i) Leveraging Data and technologies to Ease Logistics; (ii) Green and sustainable Logistics.

 

Efficient domestic logistics are pivotal for both national and international trade competitiveness. The integration of objective and perception-based data in LEADS 2023 ensures a holistic framework for evaluating logistics performance. The latest edition builds strengthening objectivity and precision in assessment by considering a wider spectrum of state initiatives, including the adoption of PM GatiShakti National Master Plan for project planning, aligning State Logistics Policies with National Logistics Policy, besides developing City Logistics plans, etc.

Bhutan's King Jigme Khesar Namgyel Wangchuck on Sunday unveiled plans for a mega city project near the Indian border - the Gelephu Special Administration Region (SAR), spreading across 1,000 sq km. The project will link Bhutan economically with Assam to spur regional and sub-regional integration.

 

The SAR, positioned as an economic hub for South Asia, will leverage the connectivity between South Asia and Southeast Asia, according to officials in Bhutan.

 

The project, which has been in planning for several years, will have its own laws and systems, and will invite foreign direct investment and skilled workers from across the globe. Companies will be screened for quality investments. The SAR is expected to generate economic opportunities for both domestic and overseas Bhutanese.

 

During his recent 10-day visit to India, the King discussed the Gelephu project with Prime Minister Narendra Modi. The project will be part of the Sarpang district special economic zone and will include an international airport at Gelephu.

 

India and Bhutan are also planning to put in place a 58-km rail link between Gelephu and Kokrajhar in Assam. The possibility of an 18-km rail link between Samtse in Bhutan and Banarhat in West Bengal is also being explored.

 

The Indian Railways has already completed the preliminary engineering-cum-traffic survey for the Kokrajhar-Gelephu link, which will be built with Indian assistance.

 

India has also agreed to permit Bhutanese products to be transported from Haldibari in West Bengal to Chilahati in Bangladesh.

 

In order to strengthen trade infrastructure, India and Bhutan have agreed to upgrade the existing land customs station at Dadgiri in Assam into an integrated check post with India's support, and to develop facilities at Gelephu on the Bhutanese side.

 

The two sides have further agreed to designate Darranga in Assam and Samdrup Jongkhar in Bhutan as the sites for immigration check posts to facilitate the entry and exit of third country nationals by the land route for enhancing connectivity and promoting tourism.

India has assured countries who are ready to promote millets to partner with them to share the country’s experience in different spheres, be it technology or cuisines. Acknowledging that the International Year of Millets (IYM) celebrated in 2023 has led to widespread awareness of millets and increased their consumption globally, India has also appealed to the ASEAN countries to get a first hand experience on the country’s success stories in millets.

 

'Our outreach initiatives have been spectacular, reaching over 57 crore individuals. From international conferences and culinary festivals to exhibitions and awareness campaigns, every effort has been directed towards making IYM a mass movement,' said agriculture minister Arjun Munda.

 

Inaugurating a two-day conference and exhibition of millets on the outskirts of Delhi, Munda said the concerted effort transcended boundaries and transformed IYM into a global milestone of unparalleled significance. Due to IYM, there has been investment in extension services along with research and development, which has also motivated stakeholders to increase the productivity, quality and associated production methods of these Shree Anna, he said.

 

Climate smart crop

'In the face of global challenges of climate change, the importance of grains increases even more. Millet is an ancient grain and its speciality is that it is small, but nutritious and provides strength to the body. Millet has the power to revolutionise our approach to agriculture, climate and food security,' Munda said.

 

Further, the minister said that millet is not only the bearer of a rich cultural heritage but also offers a sustainable solution that matches the current concerns. The ability of these grains to address key Sustainable Development Goals, including zero hunger, good health and well-being, sustainable consumption and production, and climate action, position millets as indispensable resources for developing countries.

 

As millet has the ability to thrive in diverse environments, requiring minimum resources while providing maximum nutritional benefits, adopting it in the diet is not just about nourishing oneself, rather, it is about nourishing the earth, promoting sustainable agricultural practices, and ensuring a healthier, more secure future for future generations, Munda said.

 

'Millets are a beacon of hope for our farming communities, which provide stability in uncertain climate and empowers our farmers with favourable yield and sustainable income. Known for its minimal water requirements, low carbon footprint and ability to thrive in drought conditions, these grains truly meets the criteria of climate friendly crops,' he said.

 

Also in view of the increasing demand for vegetarian, gluten-free food, millet offers alternative food systems, he added.

 

The Indian Mission to ASEAN in collaboration with the Ministry of Agriculture and Farmers’ Welfare is organising the two-day millet festival during December 14-15. There is also a parallel exhibition of millet-based products on display by over 40 farmer producer organisations (FPOs) and start-ups. A Business-to-Business (B2B) meeting is planned for the second day, which will be organised by APEDA. This meeting will be an interactive platform fostering engagement between businesses from India and the ASEAN member countries to facilitate participants in exploring synergies and commercial opportunities across geographic boundaries.

Alcoholic beverages makers' body CIABC on Sunday sought greater market access for domestic products in the European markets and removal of non-tariff barriers to boost exports. Confederation of Indian Alcoholic Beverage Companies (CIABC) said that the EU should remove the non-tariff barriers which prevent the vast majority of Indian products from being sold in their market.

 

The free trade deal with the EU (European Union) on alcoholic beverages should be no different from the UK, negotiations for which are currently underway, CIABC said in a statement.

 

It added that the conditions that for a product to qualify as a whisky, it must be matured for a period not less than three years; and for brandy, one year, should not be applicable for products made in India, where climate is warm and maturation happens fast.

 

'It has been highlighted several times, along with scientific substantiations, that such long maturation is not applicable under warm Indian climate. We believe that it is effectively a non-tariff barrier since long maturation increases the cost of Indian products by 30-40 per cent as spirit evaporates 10-15 per cent every year under Indian climate (compared 1-2 per cent in Europe),' CIABC Director General Vinod Giri said.

 

He also said that the cost of capital deployed during maturation in India is high (8-10 per cent per annum) as compared to 2-3 per cent for Europe.

 

'We firmly believe that if the EU does not repeal the law pertaining to the maturation, any trade agreement will be one-sided favouring only the EU and will do nothing for the Indian industry,' he added.

 

Giri further said that as the EU and the UK have tax-free trade, the proposed free trade agreements with the EU should be no different from the one with the UK.

 

'If the deals agreed are any different, one can expect the trade to start using the more favourable route without any incremental cost or control,' he cautioned.

 

He said that India should offer the EU the same deal which is eventually agreed with the UK on spirits, and what has been agreed with Australia on wines.

 

'India should not offer any concessions if the EU does not open up its market for Indian products by repealing rules pertaining to maturation,' Giri added.

India will look to convince the United States (US) that the reimbursements claimed under the Remission of Duties and Taxes on Exported Products (RoDTEP) do not violate the World Trade Organisation (WTO) principles, a senior government official said.

 

The move comes days after Washington imposed a countervailing or anti-subsidy duty on a few Indian products in retaliation against the RoDTEP scheme introduced for outbound shipments in January 2021.

 

Countervailing duties are imposed on imported goods to offset the embedded subsidies that exporters of a particular country avail. 

 

'Concerning the US…since we have a regional cooperation agreement with them, we have

Prime Minister Narendra Modi and Haitham bin Tarik, the Sultan of Oman, on Saturday adopted a new 'India-Oman joint vision, a partnership for future' focusing on ten essential areas, heralding a new chapter in the strategic partnership between the two nations.

 

The joint vision document identifies a range of areas such as maritime cooperation and connectivity, energy security and green energy, space, technologies, and applications, digital payments and financial cooperation, trade and Investment, health, tourism and hospitality, IT & innovation, as well as agriculture and food security with specific action points as part of the future roadmap to deepen ties between both countries for implementation.

 

'India and Oman have had an unbreakable bond of deep friendship for centuries. At one end of the Arabian Sea is India and at the other end is Oman. Our mutual closeness is not limited to geography, but is also reflected in our trade spanning thousands of years, our culture, and our common priorities,' Modi said in his opening remarks during delegation level talks with the Sultan.

 

'On the strength of this glorious history, we are building a bright future ahead. Today we are adopting a new ‘India-Oman Joint Vision – A Partnership for Future’. In this Joint Vision, concrete action-points have been agreed upon on 10 different areas. I am confident that this joint vision will give a new and modern shape to our partnership,' Modi pointed out.

 

This is the first visit to India by a Sultan of Oman after 26 years and the gesture is significant as it signals support to India amid the Israel-Palestine conflict. The two sides also signed five MoUs including one between the Financial Intelligence Unit (FIU) India and the National Centre for Financial Information (NCFI) Oman on cooperation in the exchange of intelligence related to money laundering, associated predicate offences and terrorism financing. Other MoUs focus on culture and information technology.

 

The two sides also held discussions to advance the Comprehensive Economic Partnership Agreement (CEPA) agreement, which would be India’s second such pact in the Gulf after the UAE.

 

'I am glad that discussions on the CEPA agreement are ongoing between the two sides. Two rounds of these talks have been successfully completed in which consensus has been reached on many important issues. I hope that we will be able to sign this agreement soon, which will add a new chapter to our economic cooperation,' Modi noted.

 

The two Leaders at the Summit strongly condemned terrorism in all its forms and manifestations. They agreed that there cannot be any justification for any act of terror for any reason whatsoever. They affirmed their commitment to enhancing cooperation to combat terrorism and underscored the significance of fostering the universal values of peace, moderation, coexistence, and tolerance while highlighting the imperative of renouncing all types of violent extremism.

 

The PM pointed out that even at the global level, India and Oman have been moving forward in close coordination. 'Oman, as a guest country, has made a very valuable contribution to the success of India's G20 presidency.'

 

The PM also referred to Indian expatriates in Oman and their strong bonds there. 'A large number of people of Indian origin consider Oman as their second home. These people are live examples of our close ties and our friendship.'

 

Oman is India's oldest strategic and defence partner in the Gulf region which has given New Delhi access to the strategically located Duqm Port.

The government is exploring a technology tool developed by ecommerce major Amazon called Johari to reduce wastage of fresh fruits and vegetables at its warehouses and retail outlets.

 

A pilot project at some of Mother Dairy-owned Safal stores across Delhi and Bengaluru is on the anvil.

 

Johari uses computer vision models and wi-fi-enabled internet-of-things (IoT) cameras to identify pre-determined defects-cuts, cracks and other damages-in fresh produce.

 

These cameras are strategically placed on store shelves or sites where produce is stored. They automatically capture images of the crates at periodic intervals, allowing for continuous monitoring of the quality of the fresh produce.

 

'The government is always open to new ideas. We will do the cost analysis and ensure that the technology is scalable as well as viable for the government, based on which we can do a pilot in select outlets,' a senior government official told ET, requesting anonymity.

 

This development comes after a recent closed-door meeting between officials of government policy think-tank NITI Aayog and Amazon to discuss the efficacy of Johari.

 

The Centre mostly procures foodgrains to be sold at subsidised rates and to maintain a buffer. Besides, it procures onions in large quantities and at times tomatoes to keep prices in check and maintain a demand-supply balance. It also sells fresh fruits, vegetables and other perishables through Safal stores under the National Dairy Development Board.

 

Rajeev Rastogi, vice president, machine learning at Amazon, confirmed to ET the meeting held with NITI Aayog officials to get Johari deployed in government-owned centres.

 

In August this year, Amazon India launched the shelf monitoring solution Johari to ensure that only fresh quality fruits and vegetables are delivered to customers.

 

Automated monitoring using IoT cameras reduces the need for manual inspection, saving time and labour costs in the quality control process, the company said. The technology provides real-time information, enabling prompt decision-making and action to maintain the freshness of the produce, it said.

 

Cost of Deployment

 

The deployment cost of the shelf-life monitoring technology encompasses several factors. To optimise image viewing on each shelf, the recommended approach entails deploying one low-cost IoT camera per shelf, ensuring a practical and effective monitoring solution that is scalable, Rastogi said. According to him, the selected IoT cameras are priced at approximately $25 each for 5 megapixel and $20 for 3 megapixel, making them highly cost-effective for deployment at scale.

 

The estimated cost for deploying the camera in each store can range from Rs 2,600 to Rs 3,300 per camera, encompassing the cost of the IoT cameras with nearly 50% import duties, he said. There are other costs for required cloud computing infrastructure and usage of quality models as a service depending on the scale and usage, he added.

 

The technology identifies the region of the defect on the product surface area and can also calculate dimensions such as ratio of the length/area of the defect with respect to the length and area, he explained. The total deployment cost is contingent on the number of Safal stores in each region and the number of shelves required to be monitored, he clarified. Each shelf will require one camera for monitoring assuming a standard crate size.

 

The upfront deployment costs are offset by the technology's capability to mitigate food waste, enhance quality assurance and elevate overall customer satisfaction, he argued. Johari works in two monitoring modes-manual and automated. Manual monitoring lets Amazon India's sellers or operators submit a picture of the produce in a crate from their phone. The shelf monitoring solution then analyses the image using grading logic to highlight any item that does not meet quality standards, Rastogi explained. He said that the app can also be used to understand specific defects for each item and the whole process takes six seconds. In the automated monitoring option, cameras on shelves take pictures at predetermined intervals and analyse quality through the above process, he said.

The Ministry of Food Processing Industries (MoFPI), pursued with various stakeholders including Central Ministries/Departments and State Authorities to leverage World Food India - 2023 for development of a conducive ecosystem to channelise infrastructure development, trade and investment promotion in the food processing sector. In this regard, the Ministry held the 2nd Inter-Ministerial Committee Meeting on June 30, 2023 with different Ministries/ Department/Commodity Boards requesting them to participate in the event.

 

As a result of these efforts, Wide spectrum of domestic and overseas stakeholders participated in World Food India, organised during November 3 to 5, 2023, which includes 10 Union Ministries/Departments, 6 Commodity Boards and 25 States/UTs. Reverse Buyer Seller Meet was organised as part of World Food India with the support of the Department of Commerce and its Commodity Boards.

The growth rate of GVA (gross value added) in agriculture and allied sectors increased from 2.10 per cent in 2018-19 to 3.96 per cent in 2022-23.

 

In a written reply in the Rajya Sabha on Friday, Arjun Munda, Union Agriculture and Farmers’ Welfare Minister, said the Government has adopted and implemented several policies, reforms, developmental programmes and schemes for improving the agricultural growth prospects and incomes of farmers since 2014. These have led to a rise in the GVA of the agriculture and allied sector, registering an average annual growth rate of 4 per cent over the past five years.

 

Referring to the provisional estimates of National Income 2022-23, released by the Union Ministry of Statistics and Programme Implementation, the Minister said the annual growth rate of agriculture (growth rate of GVA of agriculture and allied sectors) at 2011-12 prices were at 6.16 per cent in 2019-20, 4.11 per cent in 2020-21, and 3.51 per cent at 2021-22.

 

The Budget allocation of the Union Ministry of Agriculture and Farmers’ Welfare (including the Ministry of Cooperation, Department of Animal Husbandry and Dairying, and Department of Fisheries) was only ?30,223.88 crore in 2013-14. This has been enhanced to ?1,25,035.79 crore in 2023-24.

 

As a per cent of the Government’s total Budget outlay, allocation to the Ministry of Agriculture and Farmers’ Welfare has increased from 1.8 per cent in 2013-14 to 2.8 per cent in 2023-24, he said.

 

Farmers’ migration

To a separate question on migration of farmers, Munda said the shift in workforce from primary (agriculture) sector to secondary and tertiary sectors is a normal phenomenon of the development process experienced by countries across the world and the same is true for India as well.

 

Quoting the Periodic Labour Force Survey (PLFS) 2021-22 and 2022-23, released by the Union Ministry of Statistics and Programme Implementation, he said the percentage of workers in the usual status engaged in agriculture and allied sector was at 45.8 per cent in 2022-23 against 45.5 in 2021-22.

 

Stating that agriculture is a State subject, he said the Central government supports the State governments through the implementation of various Centrally sponsored / Central sector schemes for the benefit of farmers and to ensure the growth and development of the agriculture sector in the country.

The commerce ministry has started an exercise to help Indian exporters keep proper documentation to deal with US countervailing duty cases on domestic products, an official said.

As part of the exercise, teams of the directorate general of foreign trade (DGTR) and directorate general of trade remedies (DGTR) are working on a roadmap to work on the kind of documentation that needs to be maintained by Indian exporters.

 

Before imposing countervailing or anti-subsidy duty (CVD), a country carries out detailed investigations on products which it believes that its trading partner is subsidising for export purposes. Subsidising exports is a kind of unfair trade practice.

 

Countervailing duties can only be imposed if the investigating agency of the importing country determines that the imports of the product in question are subsidized and are injuring a domestic industry.

Imposition of this duty does not prohibit or restrict imports. World Trade Organisation (WTO) allows its member countries to use these tools to provide a level-playing field to their domestic players.

The US has conducted countervailing investigations and submitted final determination on three Indian products -- paper file folders, common alloy aluminum sheet, and forged steel fluid end blocks.

The European Commission too has conducted a similar probe on certain graphite electrode systems from India.

 

The Indian government and the affected exporters have strongly defended the subsidy allegation against various programmes and schemes of the government, both at central and state level, in their written and oral responses during the conduct of investigations, the official said.

While imposing CVD, it has been stated that there is a need for a reasonable and effective system to confirm inputs, consumption amount and imposed indirect taxes.

The official said that products which the US have investigated involved reimbursement of levies like electricity duty, VAT on fuel or APMC taxes.

These levies are reimbursed under the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP), a WTO-compliant measure.

 

'What the US authorities want is a highly technical kind of a report under the investigation. So what we are trying to do is that in association with the DGTR and their team, we are now trying to sensitise exporters about the kind of documentation which they need to maintain to satisfy the US investigating authorities,' the official who did not wish to be named said.

The DGFT has recently held a meeting with the DGTR on the issue.

'Now we are working on a roadmap as to what kind of documentation should be maintained by our exporters so that our exporters are able to produce those documents before the investigating authorities. In addition to that, a certain random test check by Indian authorities would also be required. So on both these steps, we have initiated action,' the official added.

 

RoDTEP scheme has been implemented for exports from January 2021 to refund, currently un-refunded taxes/duties/ levies, which are not being refunded under any other mechanism, at the central, state and local level, but which are incurred in the process of manufacturing and distribution of exported products.

The scheme is being implemented by the Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue, in an end-to-end IT environment.