Unlocking India's Logistics Potential : The Value of Disaggregated Macroscopic Freight Flow Analysis
India is one of the fastest growing major economies. However, at 14 percent of gross domestic product, its logistics costs are high relative to the 8 to 10 percent that is typical of most advanced economies. High logistics costs and poor logistics...
| Main Authors: | , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/888791518530457570/Unlocking-Indias-logistics-potential-the-value-of-disaggregated-macroscopic-freight-flow-analysis http://hdl.handle.net/10986/29371 |
| Summary: | India is one of the fastest growing
major economies. However, at 14 percent of gross domestic
product, its logistics costs are high relative to the 8 to
10 percent that is typical of most advanced economies. High
logistics costs and poor logistics performance impact the
competitiveness of the economy on multiple levels: (1) firms
deliver less competitive goods and services; (2) consumers
pay more than peers for goods; and (3) the cost of achieving
improvements in gross domestic product is excessive. The
development of a national transport and logistics network to
facilitate competitiveness and sustainable development and
uplift rural regions will play an increasingly important
role in shaping spatial organization in emerging economies.
An element that is absent, yet critically important for
national logistics issues in emerging economies, is
sufficiently detailed freight-flow analysis to facilitate
targeted infrastructure investments and enable
transformational change to improve national logistics
performance. This paper presents the results of a
disaggregated macroscopic freight demand analysis developed
for India through a hybrid approach, calibrating the modeled
input-output matrix and resulting freight flows with data
where available. Data was obtained from multiple sources,
such as agricultural statistics, national enterprise
surveys, a financial performance database of Indian
companies, population statistics, and transportation
statistics from rail, inland waterways transport, highways,
and ports. The model provides evidence for decision making
on several levels. Aggregating freight flows enables
planners to identify gaps in critical infrastructure and
logistics chains. Disaggregated flows support decisions on
the location of logistics clusters, maximizing the potential
of multimodal transport systems, and designing the
distribution and storage networks that underpin the economy. |
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