
Export thrust: India should move goods like a horse to trade like a tiger
The 'trading across borders' indicator from the World Bank's 2020 Doing Business data-set showed that exporting from India took significant time and money. On average, border procedures alone took 52 hours and $212 per container. Export documentation consumed 12 hours and $58. Importing took even more—with around 65 hours and $266 needed for border clearance, and 20 hours and $100 for documentation.
In comparison, China was processing the same export shipments within 21 hours at a slightly higher cost of $256 per container. It processed documents faster too, in 9 hours on average, although the documentation cost is $74, slightly higher than in India.
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India was better placed than the likes of Bangladesh and Vietnam, but behind countries like South Korea, which was the world leader on those counts. South Korea was doing border checks in just 13 hours at a cost of $185, and document processing in 1 hour for only $11. All these numbers showed the gap India needed to cover in competition with the world's best export performers. While Doing Business data is old and the World Bank has discontinued this study, its broad 2020 rankings may not have changed very much (except in Vietnam's case perhaps).
More recent data from the World Bank's Logistics Performance Index (LPI) offers us another picture. This index tracks the transportation of goods within and between countries, taking into account six measures: customs efficiency, infrastructure, ease of coordinating international shipments, logistics quality, tracking and tracing ability, and punctuality (frequency of on-time shipments).
As reported by the 2023 LPI report, India has taken significant strides on logistics, moving its world ranking from No. 54 in 2014 to No. 38 in 2023, with its score rising from 3.08 to 3.4. Its ranking on timeliness rose from No. 51 to No. 35, and its score for logistics competence and quality rose from 52 to 38, signifying higher professionalism and reliability in freight services. Moreover, in terms of infrastructure (covering ports, roads and railways), India's rank rose from No. 58 to No. 47, reflecting the impact of recent investments in physical logistical infrastructure.
Still, China is ahead of India on an absolute basis, at 19th place with a score of 3.7. It scores better on all the key factors: timeliness, quality of logistics and impressively on infrastructure, indicating the strength and dependability of its supply chain mechanisms. India's progress is heartening. Yet, continued efforts are needed to reach the logistics performance of global leaders.
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India has also achieved impressive reductions in 'dwell time'—the number of days that cargo is held at a terminal or port before it can proceed. In the LPI 2023 report, while 4 to 8 days is the typical dwell time for economies at every level of income, India is on par with Singapore with a dwell time of only 3 days. This is an achievement ahead of the UAE, South Africa, US and Germany, indicative of improved coordination between customs officials, port authorities and logistics firms.
Underpinning these efficiency gains is India's massive investment in transport and logistics infrastructure. The coverage of National Highways (NH) increased from 65,569km in 2004 to 146,145km in 2024, with four and more lane stretches rising 2.6 times since 2014.
The construction tempo has picked up sharply, from 12.1km per day in 2014-15 to 33.8km per day in 2023-24. Flagship programmes such as the Bharatmala Pariyojana launched in 2017, are developing 26,000km of economic corridors, ring roads, bypasses and elevated corridors to ease city congestion and enhance freight movement. As of November 2024, 18,926km of roads had been constructed under this scheme.
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Apart from this, 35 multimodal logistics parks are also being built under the Bharatmala plan, with an aggregate outlay of ₹46,000 crore. On commissioning, these parks will be capable of transporting 700 million metric tonnes of cargo, increasing India's capacity to integrate various modes of transport in a cost-effective manner.
India's port cargo handling capacity has nearly doubled from 800.5 million tonnes annually in 2014 to 1,630 million tonnes in 2024, an increase of 87%. India has also climbed in terms of its world ranking in shipments, from No. 44 in 2014 to No. 22 in 2023. Concurrently, the turnaround time (TRT) at major ports—the time that ships spend at port—has declined significantly from 94 hours in 2013-14 to 48.06 hours in 2023–24. Average berth-day production has gone up by 52% and India is also seeing increased tourism through cruise terminals and lighthouse sites.
Also Read: India could learn much from the complaints of its trade partners
These reforms can be said to represent a paradigm shift. India is slowly putting in place the logistical framework necessary to support its dream of becoming an export-led economy. Continued and deepened, these reforms could bridge the gap between India's expansive trade aspirations and the harsh realities of trading on the international stage, thus making India not just a significant exporter but a truly competitive one.
These are the author's personal views.
The author is a research associate, NCAER, New Delhi.
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Time of India
7 minutes ago
- Time of India
Finance Commission needs to focus on strengthening local bodies, says Raghuram Rajan
Former RBI Governor Raghuram Rajan suggests the 16th Finance Commission should prioritize devolving more funds to local bodies for effective problem-solving. He emphasized decentralization, drawing comparisons with China and the US regarding local government employment. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The 16th Finance Commission should focus on devolving more funds to local bodies, municipalities and panchayats to enable them effectively deal with problems facing the people, former RBI Governor Raghuram Rajan has that previous finance commissions devolved more funds to states, Rajan told PTI Videos, "Now we need to focus also on devolving funds from states to municipalities to panchayats, etc. That third level of devolution is what we need far more of."Citing examples of China and the US, Rajan pointed out that the number of local government employees in these countries is significantly higher than the share of local government employees in on the need for more decentralisation in a large country like India which is overly governed from the Centre and state capitals, he said,"I think the 16th Finance Commission should focus on making that happen through carrots and potentially sticks."Recently, 16th Finance Commission Chairman Arvind Panagariya had said that a majority of states have recommended that the Centre increase their share in tax revenue distribution to 50 per states receive 41 per cent of the divisible tax pool, while the remaining 59 per cent is retained by the Finance Commission, mandated by the Indian Constitution, plays a crucial role in strengthening the financial position of municipalities (urban local bodies).It reviews the financial position of municipalities and makes recommendations to state governments on various aspects of fiscal asked what is his assessment of Production Linked Incentive (PLI) scheme, Rajan said, "I do not think we have any strong public data to evaluate the PLI scheme." He noted that as with all government programmes, there is some success as India is exporting more cell phones now."But has it (PLI scheme) done enough to move the needle on jobs in a big way? I think at job numbers you see in the periodic labour force surveys (PLFS) suggest not yet," Rajan, currently a professor of finance at Chicago Booth 2021, the PLI scheme for 14 key sectors including telecom, electronics, pharma, textiles and auto was announced with an outlay of Rs 1.97 lakh crore to enhance India's manufacturing capabilities and to a question on China's rare earth material exports curb to India and other countries, Rajan said,"We need a strategic view of different industries and ask where we can be held up by bottlenecks, and where it is relatively easy for us to undertake production to elevate those bottlenecks."He noted that sometimes some sort of antagonistic power can limit "our access to chips, but it is very, very costly for us to have an entire chip manufacturing sector.""So we have to find alternative ways of getting those example through creating domestic buffers of key chips," he to Rajan, in some areas, India has the opportunity to produce more rare earth metals ."For example, I understand there are reserves of some of these rare earth materials in Kashmir. Could it be a win-win situation to create more employment in Kashmir which is really very important both from an economic perspective and also from a geo-strategic perspective."


News18
an hour ago
- News18
Modi's Maritime Revolution: Redefining India's Economic, Climate And Strategic Future
Last Updated: Modi's maritime gambit positions India as an indispensable seafaring power capable of shaping the oceanic order of the 21st century India's 7,500-km coastline has long been an underused asset. Under Prime Minister Narendra Modi, however, the waterfront has been recast as a fulcrum for national power. Data reveals a sector in unprecedented expansion: cargo-handling capacity has surged by 87.6 per cent under the NDA government, rising from 1,399.99 million metric tonnes per annum (MMTPA) in 2013-14 to 2,627 MMTPA in 2022-23. This remarkable growth, however, represents only the foundation of Modi's vision for India as a global maritime powerhouse by 2047. Historically a neglected asset in India, ports are now surging upwards. Major ports now handle 855 million tonnes of cargo annually, a 4.3 per cent increase from the previous year, while achieving a 48 per cent improvement in average turnaround time, from 96 hours in 2014-15 to 49.5 hours in 2024-25. These efficiency gains position Indian ports ahead of developed economies, with container dwell times averaging just 2.6 days compared to 6-7 days at major US ports. Closing the Gap Modi's maritime transformation has fundamentally altered India's position in global logistics rankings. The World Bank's Logistics Performance Index reflects this progress, with India rising from 54th position in 2014 to 38th in 2023. More significantly, nine Indian ports now feature among the world's top 100, with Visakhapatnam Port ranking 19th globally for container performance. Whilst India's logistics costs have fallen to 10 per cent of GDP—targeting single-digit levels by year-end—China's equivalent figure remains at 14.4 per cent. Union minister Nitin Gadkari emphasised the impact: 'Turnaround times at ports are down by 45 per cent, and transport costs have dropped by 25 per cent". The National Logistics Policy, launched in September 2022, provides the strategic framework for this transformation. Through its four pillars: digital integration, Unified Logistics Interface Platform, ease of logistics, and system improvement, the policy coordinates logistics development across 16 ministries. The PM Gati Shakti Master Plan complements this approach, utilising GIS-enabled digital platforms to ensure coherent multimodal infrastructure development. These initiatives have already reduced port dwell times from 3.4 days in 2018 to 2.6 days in 2023, delivering benefits to exporters and importers nationwide. Sagarmala and Beyond The Sagarmala Programme, launched by Modi in March 2015, represents the cornerstone of India's maritime transformation. This flagship initiative encompasses 839 projects worth Rs 5.79 lakh crore, of which 272 projects valued at Rs 1.41 lakh crore have been completed. The programme's impact extends beyond physical infrastructure: it has generated 118 per cent growth in coastal shipping over the past decade and achieved a remarkable 700 per cent surge in inland waterway cargo movement. Under Sagarmala's modernisation pillar, 103 completed projects have added 528 million metric tonnes per annum of port capacity. The programme's connectivity dimension has been equally transformative, with 94 projects costing Rs 58,073 crore adding 8,400 kilometres of road and rail networks connecting ports to consumption centres. This infrastructure expansion directly addresses India's long-standing challenge of last-mile connectivity, ensuring that port efficiency gains are translated into broader logistical improvements. The Major Port Authorities Act, 2021, grants port authorities greater tariff autonomy, facilitating private sector engagement. Recent parliamentary approvals include the Bills of Lading Act 2025, replacing 169-year-old colonial legislation with modern, internationally aligned frameworks. The Indian Ports Bill, 2025, further consolidates port governance, establishing Maritime State Development Councils and empowering State Maritime Boards for comprehensive sector oversight. The private sector has responded enthusiastically to these reforms. Investment in public-private partnership projects at major ports has increased threefold, from Rs 1,329 crore in FY 2022-23 to Rs 3,986 crore in FY 2024-25. Modi's maritime vision explicitly links port development with employment generation and technological advancement. Sagarmala-linked industrial and logistics clusters are projected to create 10 million positions, including four million direct roles by 2025. The Skill Development Programme under the DDU-GKY framework has already trained over 20,000 coastal youth across twenty districts, demonstrating the government's commitment to inclusive maritime growth. The Centre of Excellence in Maritime & Shipbuilding at Visakhapatnam and Mumbai exemplifies this approach, training 10,500 technicians annually in mechatronics, simulation, and robotics for shipyards. These institutions ensure that India's maritime expansion rests on a foundation of skilled human capital capable of operating and maintaining advanced port technologies. The government's broader skilling initiative aims to train 50,000 youth from the Northeast in maritime skills over the next decade, with dedicated centres in Guwahati and Dibrugarh leading this effort. On the technological front, the Unified Logistics Interface Platform represents perhaps the most ambitious technological initiative, integrating datasets from 16 ministries into a single digital ecosystem. It enables seamless cargo release processes and real-time tracking across multimodal transport networks. The National Logistics Portal, launched in January 2023, provides one-stop access to all logistics services, reducing bureaucratic friction and improving transparency for businesses of all sizes. Sustainability and Climate Leadership Modi's maritime agenda explicitly positions ports as leaders in India's climate transition. Three major ports, Kandla, Paradip, and VO Chidambaranar, are being developed as green hydrogen hubs under the National Green Hydrogen Mission. This Rs 1.5 lakh crore initiative aims to produce five million tonnes of green hydrogen annually by 2030, positioning India as a global leader in clean fuel exports. Kandla Port will become India's first operational green hydrogen facility by July 2025, with a 1-megawatt electrolyser producing 18 kg of hydrogen per hour. The facility will scale to 10 megawatts, generating 80-90 tonnes annually whilst serving as a model for similar developments across India's port network. These hydrogen hubs leverage India's renewable energy capacity, currently 223 gigawatts, including 108 GW from solar and 51 GW from wind, to create export-oriented clean fuel industries. Major ports have committed to sourcing 60 per cent of their electricity from renewables by 2030 and reducing carbon emissions per tonne of cargo by 30 per cent over the same period. Jawaharlal Nehru Port's 30-megawatt rooftop solar installation already produces 45 GWh annually, offsetting 32,000 tonnes of CO₂ emissions and demonstrating the practical feasibility of port-based renewable energy. Maritime Power Projection Apart from all the good it does for the economy and the environment, major ports are the epitome of maritime power projection. China, Russia, the UK, and the United States all possess advanced major ports. Modi's maritime strategy also explicitly recognises ports as instruments of geopolitical influence and national security. The transformation of India's SAGAR doctrine into MAHASAGAR reflects this evolution, positioning India as the Indian Ocean's primary security provider whilst expanding cooperation mechanisms with regional partners. The Indian Navy's 17 interventions during Red Sea disruptions since December 2023 demonstrate India's operational capability to protect maritime trade routes crucial to global commerce. Container sovereignty remains a critical vulnerability in India's maritime strategy. Current domestic production of 10,000-30,000 containers annually pales beside China's 2.5-3 million, leaving Indian exporters vulnerable to supply shocks and price manipulation. Modi's government is addressing this through proposed production-linked incentives targeting 500,000 TEUs of domestic capacity by 2028, reducing strategic dependence whilst building indigenous manufacturing capabilities. Modi's maritime transformation carries profound implications for India's broader strategic positioning. The Maritime Amrit Kaal Vision 2047 envisages Rs 75-80 lakh crore in sectoral investment, targeting 10,000 MMTPA of port capacity and positioning India among the world's top five shipbuilding nations. International recognition of India's maritime progress validates Modi's strategic vision. The country's re-election to the International Maritime Organisation Council with the highest tally reflects global confidence in India's maritime leadership. top videos View all The challenges remain formidable. Container supply vulnerabilities, chokepoint exposure, and the complex geopolitics of corridor development require sustained attention and adaptive strategies. If India sustains this trajectory, the numbers generated at today's ports will translate into tomorrow's diplomatic leverage on the global stage. Modi's maritime gambit positions India as an indispensable seafaring power capable of shaping the oceanic order of the 21st century. The transformation of India's coastline represents, ultimately, the anchoring of India's broader global ascent in the strategic realities of maritime dominance. About the Author Sohil Sinha Sohil Sinha is a Sub Editor at News18. He writes on foreign affairs, geopolitics along with domestic policy and infrastructure projects. tags : Indian ports pm narendra modi Sagarmala United states view comments Location : New Delhi, India, India First Published: July 23, 2025, 10:25 IST News opinion Opinion | Modi's Maritime Revolution: Redefining India's Economic, Climate And Strategic Future Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. 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India.com
an hour ago
- India.com
This country's GDP jump by 30 percent overnight, becomes fourth-largest economy in..., its not China, US, Japan, the name is...
New Delhi: Nigeria has recently made headlines — and for a very intriguing reason. Africa's most populous country has accomplished something that even countries like the United States, China, and Japan have never been able to do. The country's GDP — Gross Domestic Product — shot up by as much as 30 percent overnight. According to the reports, Nigeria changed the method to calculate the GDP. The base year for calculating GDP in the country has been updated from 2010 to 2019. The Nigerian government has made this change after almost a decade, which has resulted in a noticeable jump in the GDP figures. Here are some of the key details: Nigeria's GDP for 2024 is N372.82 trillion, which is approximately 244 billion dollars. The amount is much higher than the World Bank's estimated 187.76 billion dollars. Following this recent change, Nigeria has now become the fourth-largest economy in the African continent, after South Africa, Egypt, and Algeria. The government here has announced that sectors like the digital services industry, pension funds, and the informal labor market have now been included in the GDP. It is important to note that the developing countries often adopt this method regularly to portray a larger size of their economy. Experts also stated that such changes are necessary every ten years.