0203 488 9447
There is definite increase of business among nations when there are least tariffs or free trade agreements so to cope with massive activity there should have been appropriate infrastructure. It is missing in India or not improving at right pace to meet the great hype of cross boarder
activities. Delays in these processes certainly minimize profits or make companies suffer from
Delays in these processes certainly minimize profits or make companies suffer from loss just due to unnecessary hurdles.
A recent study related to available transportation services and their negative impact on potential of exports of this emerging industrial power of the world has pointed out higher costs of carrying goods to export platforms.
Usually it takes 38 to 66 hours from or to a port anywhere in India that give rise to likelihood of spoilage, higher carriage cost and delay also make them to pay penalty. Use of storage place for more time also forces the companies to pay more that ultimately results in cuts of gains.
This study has been carried out for four big sectors that are namely textiles and garments, pharmaceuticals, automobile components and electronics. A very practical decrease of 10 percent in aforesaid costs could benefit in billions of dollars due to increase. So with efforts from authorities having power and people having stakes in this process this could be achieved.
Establishment of manufacturing units away from ports also a cause of this problem that can be corrected with planning for future. A lot of work has been done in this regard as rank of the country has improved 16 places from last year 35th in World Bank index of Logistic Performance. But cost per container Shipping is more than double in India when compared with other emerging markets like Malaysia and Indonesia.
It is really alarming for businessmen and they want to get it to less than six hundred dollar from more than thirteen hundred dollars. For this some serious work out is required and implementation of all perimeters that are observed by those countries that have competitive average cost for a container.
Inclusion of digital India concept in this procedure would be certainly helpful to attain targeted levels. Cooperation from at all levels and from different people involved in it is basic requirement to move forward. Suggestions are critical and to make stakeholders agree on preferred solutions effort of authorities in charge is of great importance.
The indirect shipping costs will come to desired point and the firms involve in export or import get higher profits and more trade activity becomes possible that would further generate employment and revenue for the country. In the era of competition research-based decisions are the best answer to problems that business community has been facing as impediments to achieve optimum outcome of all endeavors.
