The figure that India's logistics cost is 13 per cent of GDP is probably not correct and as per initial indications, it would not exceed 10 per cent, a top government official said on Thursday.
Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Rajesh Kumar Singh said they are in the process of conducting a fresh study, along with NCAER, to calculate India's logistics cost.
"The figure of 13 per cent of Gross Domestic Product (GDP) being logistics cost is probably not correct... The initial indications are that our logistics cost would not exceed 10 per cent or so," he said at an industry event here.
The government is working on a framework to assess the logistics cost in the country and is expected to get a realistic estimate soon.
At present, the government is going by certain estimates, which suggest that India's logistics cost stands at 13-14 per cent of the country's GDP.
He also said some PLI schemes are in the pipeline. The scheme for sectors like pharma and electronics are doing good.
On startups, Singh said the government intends to bring out a policy for deep tech startups.
On GST, he said the government does believe that GST requires rationalisation in many areas, not just in food processing but in many other areas.
"In long run, I have no doubt that we are going to see rationalisation of GST rates in some areas like apparel, footwear and food processing, where there is clearly tax burden and it is not rational," he said.
