India must bolster its shipping and logistics infrastructure to reduce vulnerability during global disruptions and enhance trade competitiveness, Special Secretary, Department of Commerce, Rajesh Agrawal, said on Thursday.
Speaking at the Confederation of Indian Industry’s (CII) Export Logistics Conclave, Agrawal highlighted that the limited number of Indian-flagged vessels contributes to a significant services trade deficit—approximately USD 50 billion—linked solely to maritime logistics.
He described the situation as ‘unsustainable’ and warned that inadequate control over logistics systems leaves India exposed during international crises.
“Countries with stronger control over logistics systems fare better during global disruptions,” he noted, citing spikes in shipping costs during the COVID-19 pandemic and recent Red Sea tensions that adversely impacted Indian exports.
Agrawal emphasised the need for India to establish a minimum level of control over the global logistics ecosystem to support its long-term trade ambitions, including the vision of becoming a developed economy by 2047 under the ‘Viksit Bharat’ initiative.
He pointed out that India currently has limited influence over both maritime and air cargo capacity, which often results in delays and higher costs for exporters.
He cited a specific case where containers bound for African markets must transit through foreign hubs like Singapore or Dubai, adding both time and expense to the shipment process.
The remarks come amid renewed focus on building robust supply chains and logistics capabilities as India seeks to emerge as a global manufacturing and trading hub.