Content

1. From Growth Engine to Global Edge: Supercharging India’s Logistics
2. Tex-RAMPS

From Growth Engine to Global Edge: Supercharging India’s Logistics

What Is Logistics?

• Movement, storage, and flow of goods from producer to consumer.
• Includes transport, warehousing, cold chain, inventory mgmt, and information systems.
• Efficiency of logistics directly affects GDP, export competitiveness, supply chain resilience, and cost of doing business.

Relevance

GS2 – Governance

• Centre–State coordination under GatiShakti.
• Institutional reforms: DPIIT, MOSPI, GSTN data integration.
• Regulatory clarity through HSN mapping.
• Urban governance for freight mobility under SMILE.

GS3 – Economy / Infrastructure

• Logistics cost reduction → competitiveness.
• Multimodal transport, freight corridors.
• Industrial parks & EoDB improvements.
• Green corridors, sustainability metrics.
• Impact on exports, FDI, value chains.

Global benchmarks:

• Logistics cost for advanced economies: 7–8% of GDP.
• For India, old estimates: 13–14% (unscientific); new estimate: 7.97% of GDP (2023–24).

Big Picture: Why Logistics Is a Strategic Sector for India

• Determines India’s competitiveness in global value chains.
• Critical for Make in India, manufacturing exports, agri-produce movement, and e-commerce.
• Logistics reforms can increase GDP by 5–7% (World Bank estimates).
• India targets being a global logistics hub under National Logistics Policy + PM GatiShakti.

Key Data & Findings (PIB 2025)

• Logistics cost: 7.97% of GDP, 9.09% of non-services output.
• Total cost: ₹24.01 lakh crore.
• Study by DPIIT + NCAER using hybrid methodology (3,500+ firms + MOSPI + RBI + GSTN).
• Smaller firms incur disproportionately higher logistics costs → competitiveness gap.
• Cost-saving lever: Multimodal integration + last-mile improvements.

Structural Transformation Underway

• Shift from fragmented ecosystem → integrated, multimodal, digital logistics.
• Removal of frictions: GST, e-Way Bill, FASTag, digital freight platforms.
• Dedicated freight corridors, revitalized waterways, modern warehousing clusters.
• Plug-and-play industrial parks → lower entry barriers, faster setup.

Digital Backbone of India’s Logistics

• ULIP: integrates 30+ departments; single API interface for logistics data.
• LDB 2.0: real-time multimodal shipment visibility (road/rail/sea/high seas).
• HSN Code Mapping: 12,167 codes → 31 ministries → accountability, trade precision.
• National Master Plan dashboards → evidence-based infrastructure planning.

Multimodal Logistics along the Gangetic Plain (Case Study)

Eastern Dedicated Freight Corridor (EDFC):

• Turnaround time of wagons: 15–16 days → 2–3 days.
• Long-haul transit time: 60+ hours → 35–38 hours.
• Digital command centre at Prayagraj.
• Cargo shift to rail = lower cost + lower emissions + reduced congestion.
• Linked to Ganga Waterway at Varanasi → multimodal synergy.

Investments:

• WB funding: $1.96 bn (EDFC + Rail Logistics) + $375 mn (Ganga Waterway).

Impacts:

• Efficient movement to Haldia, Kolkata ports.
• New warehousing clusters → jobs + better inventory management.
• Lower carbon footprint; enhanced eastern India competitiveness.

National Level Reform Pillars (2025)

A. PM GatiShakti: Integrated Infrastructure Planning

• District Master Plans in 112 aspirational districts.
• PM GatiShakti Offshore → geospatial integration for wind farms, marine infra.
• PM GatiShakti Public: access to 230 datasets for industry + researchers.
• National Master Plan dashboard + decentralized data uploading → transparency.

B. SMILE: City-Level Logistics Planning

• Pilot in 8 cities + 8 states, ADB-supported.
• State level → links hubs to corridors.
• City level → integrates freight with master plans and mobility policies.
• Targets: urban decongestion, low/no-emission freight, automated processes.

Outcomes:

• National model for coordinated urban freight.
• Cleaner cities, faster movement, lower logistics cost, more jobs.

C. LEADS 2025: Ranking States on Logistics

• Mix of perception + objective data (32.5% objective share, rising).
• Tracks 5–7 major corridors.
• APIs capture truck speeds, delays, bottlenecks.
• Drives competitive federalism in logistics reforms.

D. LDB 2.0: Real-Time Visibility

• Syncs with ULIP APIs.
• Tracks via container number, vehicle number, rail FNR.
• Live heatmap → identify delay zones.
• Benefits MSMEs + exporters with predictable supply chains.

E. IPRS 3.0: Rating Industrial Parks

• Grades: Leader, Challenger, Aspirer.
• Indicators: connectivity, digital readiness, green infra, skills, tenant satisfaction.
• 20 plug-and-play NICDC parks: 4 completed, 4 under construction.

F. HSN Guidebook

• 12,167 codes mapped to 31 ministries.
• Improves regulatory clarity, sector-specific oversight, negotiation leverage.

Why Logistics Matters More Than Ever ?(Strategic Lens)

• Accurate cost data → targeted policy → global credibility.
• Multimodal shift reduces dependence on trucking (currently ~70% freight share).
• Green logistics aligns with global carbon-neutral supply chain norms.
• Better logistics → lower inflation (supply-side efficiencies).
• Direct impact on export competitiveness (cost-to-export).

Strengths of India’s Emerging Logistics Architecture

• Unified digital stack unmatched globally (ULIP + LDB + e-Waybill).
• Multimodal infrastructure, especially rail + waterways synergy.
• Competitive federalism via LEADS + IPRS.
• Evidence-based planning under PM GatiShakti.
• Urban freight mainstreamed through SMILE.

Challenges That Still Need Addressing

• High variability of logistics efficiency across states.
• MSMEs disproportionately affected by high logistics costs.
• Skill gaps in supply-chain management, digital freight ops, cold chain.
• First-mile (farm/industry clusters) and last-mile (urban) still weak.
• Need for green truck fleets, EV freight, and clean inland container movement.
• Limited multimodal transport adoption by small firms.

Tex-RAMPS

What Is Tex-RAMPS?

• Full form: Textiles-Focused Research, Assessment, Monitoring, Planning & Start-up Scheme.
• Central Sector Scheme — fully funded by Ministry of Textiles.
• Outlay: ₹305 crore (FY 2025-26 to FY 2030-31).
• Aligned with next Finance Commission cycle — ensures continuity of funding and planning.
• Designed to future-proof India’s Textiles & Apparel (T&A) sector.

Relevance  

GS3 – Economy / Manufacturing / Infrastructure

• Strengthens competitiveness of a major industrial sector contributing ~12% of manufacturing GVA.
• Drives industrial upgrading: smart textiles, technical textiles, circularity, digital manufacturing.
• Enhances export competitiveness through higher quality, sustainability, and innovation capacity.
• Boosts MSME productivity via data systems, diagnostics, and state-level capacity building.
• Supports Atmanirbhar Bharat, Make in India 2.0, and integration into global value chains.
• Enables evidence-based economic policymaking through ITSS, supply chain mapping, employment datasets.
• Complementary to PLI, PM MITRA, National Technical Textiles Mission → builds a 360° ecosystem.

Why Was Tex-RAMPS Needed? (Structural Gaps + Global Context)

• India’s textile sector contributes ~2.3% of GDP, ~12% of manufacturing GVA, and is a top forex earner.
• Sector suffers from:
  • Low R&D spending (<1% of sectoral output).
  • Fragmented data systems → weak policymaking, inaccurate employment estimates.
  • Limited innovation in high-value segments: smart textiles, technical textiles, sustainable fibres.
  • Weak academia–industry collaboration.
  • Low start-up penetration in textile tech (compared to China, EU, Vietnam).
• Global shift toward sustainable, traceable, circular textiles → India must upgrade to remain competitive.
• Tex-RAMPS responds to these by building a research–data–innovation tripod.

Key Components (PIB + Policy Significance)

A. Research & Innovation

• Funds advanced research in:
  • Smart textiles, wearable tech.
  • Sustainability & circularity.
  • High-performance fibres (geo-textiles, agro-textiles, medical textiles).
  • Process efficiency (zero-discharge dyeing, digital printing).
• Aim: Move India up the value chain from low-cost producer → technology-intensive leader.

B. Data, Analytics & Diagnostics

• Creates robust national datasets:
  • Employment census, supply chain mapping, cluster diagnostics.
  • India-Size study → industry standard body-size database (benefits apparel fit, exports).
• Supports evidence-based policymaking, correcting long-standing data deficits.

C. Integrated Textiles Statistical System (ITSS)

• Real-time data + analytics platform for:
  • Monitoring prices, production, logistics.
  • Tracking global trends and domestic supply-demand gaps.
• Enables predictive modelling, risk alerts, and better export planning.

D. Capacity Development & Knowledge Ecosystem

• Strengthens State-level planning, cluster management, and skill systems.
• Creates a pipeline of:
  • Best practices, planning templates, case studies.
  • Workshops, summits, policy dialogues.
• Helps align state textile missions with national goals.

E. Start-up & Innovation Support

• Grants for:
  • Incubators, accelerators, hackathons.
  • Academia–industry R&D projects.
  • High-value tech start-ups (AI in fashion, traceability tech, recycling).
• Builds an innovation pipeline akin to PM MITRA parks.

Expected Outcomes

• Global competitiveness:
  • Boost in productivity, quality, sustainability → improved export share.
• R&D ecosystem strengthening:
  • More patents, prototypes, industry-academia projects.
• Data-driven policymaking:
  • Reduced information asymmetry; better cluster-level interventions.
• Employment creation:
  • Especially in high-value, innovation-driven segments.
• Stronger federal collaboration:
  • Centre–state alignment; national standardization of metrics.

How Tex-RAMPS Fits Into India’s Larger Textile Strategy ?

• Complements existing flagship interventions:
  • PM MITRA Parks (infrastructure).
  • PLI for Textiles (production & scale).
  • National Technical Textiles Mission (high-value segments).
  • SAMARTH (skill development).
• Tex-RAMPS fills the missing pillar: R&D + Data + Innovation.
• Together, they build a 360-degree textile modernisation ecosystem.

Economy & Manufacturing

• Moves India toward higher-value exports (technical textiles), reducing reliance on commodity apparel.
• Supports India’s goals under:
  • Sustainable fashion, circular economy,
  • Net-zero pathways,
  • Global supply chain integration.
• Strengthens India’s pitch in trade negotiations through better data, standards, traceability.
• Aligns with Atmanirbhar Bharat and Make in India 2.0.

Comparison with Global Best Practices

• EU: Circularity mandates + green tech standards
• China: State-funded textile R&D institutes + digital manufacturing
• US: Industry–university fibre innovation hubs
• Tex-RAMPS brings India closer to these models by:
  • Funding R&D,
  • Creating integrated data systems,
  • Linking research to markets.