The north-eastern states of India have a population of over 45 million, which is 3.76% of India’s total population. The seven northeast states contributed 2.8% towards the Indian GDP in 2019-2020, and logistics infrastructure and connectivity would enable further GDP growth.
The increasing strength of logistics infrastructure in eight north-eastern states is demonstrated through 17 air cargo terminals, more than 2.5 lakhs MT cold storage capacity and rapidly growing road & rail infrastructure. While one northeast state has a logistics policy and other state is in formulation stage, six states are yet to draw their plans to build robust logistics plans.
Establishing logistics capitals in north-eastern region is now a reality with two multimodal logistics parks under development in Tripura and Assam. The logistics ecosystem rapidly evolves around well-connected supply chains. Attracting and sustaining private investments in logistics is key to build such logistics capitals. As an eastern gateway, logistics capitals can thrive as transhipment and trading hubs with south-east Asia.
The Central Government’s emphasis on northeast states development is highlighted with the establishment of Ministry of Development of north-eastern region. A project funding of more than INR 26,000 crore has been sanctioned through various Government schemes for the northeast region till August 2021.
The Hon’ble Prime Minister, Narendra Modi, launched the PM Gati Shakti – National Master Plan for Multi-modal Connectivity in October 2021, essentially a digital platform to bring 16 ministries, including Railways and Roadways, together for integrated planning and coordinated implementation of infrastructure connectivity projects.
The multi-modal connectivity will provide integrated and seamless connectivity for the movement of people, goods and services from one mode of transport to another. It’s important to focus on examining the first mile and last mile gaps in northeast supply chains. Well-connected supply chains will unlock economic benefits through cost, volume and innovation opportunities. Well-established relationships with Bangladesh and south-east Asia offer greater potential to north-eastern states to become the eastern gateway.
Multimodal logistics, especially in hilly regions, demand refined skill sets for transportation and distribution. Development of such unique skill set requires sustained support from the Governments and active participation from private sector. Growing population, trade and demand drives the growth of warehouses.
Establishment of sustainable modern warehouses requires proactive planning and investments. The World Bank supported project (2020-26, US$ 150 million) in Meghalaya, which provides much needed emphasis on such futuristic investments for logistics network and ecosystem development in north-eastern region.
NE Logistics Conclave 2022: Building Logistics Capitals in Northeast
CII is organizing the NE Logistics Conclave on 6 December 2022 in Guwahati, Assam with the theme ‘Building Logistics Capitals in Northeast.’ This conference aims to determine key drivers for accelerating logistics development in north-eastern states.
Deliberations during the conference will explore approaches to bridge the first and last mile gaps in supply chains, facilitating balanced logistics ecosystem growth, strengthening the logistics human capital and National Logistics Policy.
Experts, thought leaders and industry experts will come together to deliberate on the following topics:
1. Bridge the first mile and last-mile gaps in supply chains
2. Facilitate balanced logistics ecosystem growth through policy interventions
3. Develop and strengthen Logistics human capital
To participate in the discussions, register here.