India needs more free trade warehousing zones with big logistic investments: N Sivasailam

February 21, 2020: Special secretary (Logistics) to Ministry of Commerce, N Sivasailam noted that India needs to develop more free trade warehousing zones (FTWZ) across the country with significant logistics investments to develop new markets.

He was addressing the 1st Retail Supply Chain Summit, 2020 of PHD Chamber of Commerce and Industry (PHDCCI) held at New Delhi on Thursday.

“Free trade warehousing zones should be developed with substantial investment in the logistics sector and return logistics is the way for new market development,” he said while stressing upon logistics within and outside the city; warehousing logistics; return logistics and agriculture logistics also reiterated the importance of logistics particularly in the Indian retail supply chain sector.

Free trade warehousing zones in India
FTWZs are the manifestation of the Foreign Trade Policy 2004-09 which envisages facilitating trade transactions of Exim of goods and services in free currency by building infrastructure. As per the government of India report of July 2019, India has eight free trade warehousing zones of total 361 hectares at Panvel & Nagpur in Maharashtra, Sriperumbudur and Ponneri in Tamil Nadu, Moujpur in Uttar Pradesh, Chillamaturu in Andhra Pradesh, Padur in Karnataka and ThoppumpadyRamesaram in Kerala.

The special secretary urged PHD Chamber of Commerce and Industry and its member stakeholder to enter into business and trade pertaining in state logistics and thereby create platforms and business opportunities that can facilitate, catalyze and encourage businesses and along with digitization add huge efficiencies at the supply chain front.

Digital transformation
Dr D K Aggarwal, president, PHDCCI, highlighted the vital role played by digital technology and artificial intelligence (AI) in living up to the global competition in the supply chain logistics market.

“Digital transformation is the best approach to minimize cost per square feet and optimize efficiency at all stages of the supply chain management system starting right from procuring raw materials for production till consumption by the end consumer. Digital transformation of supply change is happening and will continue to happen, so it is time that either you change and avail its multi-fold benefits or the time will change you,” said Dr Aggarwal.

India supply chain stands ready for a revolution
Sanjay Aggarwal, senior vice president, PHDCCI said “The supply chain in India stands ready for a revolution, and investment in India’s supply chain infrastructure is gaining momentum. Digital transformation has the power to push India’s supply chain to the next level.”

Sumit Duggal, founder, Signcatch, reiterated that a platform should be created for large distributors to increase the spending on technology, creating mass employment in the country.