Cargo Exports Record Impressive Growth
NEW DELHI: Despite facing challenging infrastructure deficit in the Country, highways construction and Cargo exports registered impressive growth in the first half FY2017 the Economic Survey said.
Highways construction/ widening was one area that witnessed about 10 per cent growth in the first half of the current fiscal whereas, power generation saw a little over 6 per cent increase and rail freight traffic record about 2 per cent growth, as per the Survey which was tabled in the Parliament recently.
Railway earnings saw a dip by about four per cent in the first half of the current fiscal while cargo at Major Ports saw about 5 per cent growth with cargo export growing by 10 per cent.
"On logistics, India is handicapped relative to competitors in a number of ways," the Survey mentioned indicating that the costs and time involved in getting goods from factory to destination is greater here compared to other nations despite advantages of cheaper labour.
It mentions that logistics cost in India is a high $7 per km for road transport as compared to $2.5 in China, $3 in Sri Lanka and $3.9 in Bangladesh.
Also, Customs and Port clearances take 6 days here as compared to 1.5 days in China and 3 days in Sri Lanka. "Few very large capacity containers (VLCC) come to Indian Ports to take cargo so that exports have to be transshipped through Colombo which adds to travel costs and hence reduces the flexibility for manufacturers," the Survey says.