The commerce ministry is in the process of developing an integrated logistics performance monitoring and measurement tool to improve transportation of goods and cut transactions cost, a senior official said Friday.
Special secretary in the commerce ministry, N Sivasailam, said that soon the ministry will float a request for proposal for developing the tool.
This will be a data and analytics tool for industry which will help significantly in improving logistics costs and time, he told reporters here.
Through this tool, companies would be able to chalk out plan to use different modes of transportation including road, rail and water to enhance their cost effectiveness.
Sivasailam said that data would be crowd sourced from different agencies including customs, railways, shipping and road ministry.
Through this tool, a transporter can see congestion at roads and tolls and can accordingly plan movement of goods in a cost and time effective manner, he said adding the tool will inform the best route and medium for transportation of goods.
He added that the ministry would approach GST Network, and Google for data sharing.
The commerce ministry is working on several measures, including formulating an integrated plan and setting up of a digital platform, to promote growth of the logistics sector.
The sector holds enormous opportunities to boost the economic growth of the country and these measures would also help cut transaction costs and time of traders.
These initiatives are important as the cost of logistics for India is about 14 per cent of its GDP and it is higher than in other countries.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)