“We need to strengthen shipping ecosystem to reduce vulnerability in times of global crises” : Rajesh Agrawal

NEW DELHI : “India needs to strengthen its shipping ecosystem to reduce vulnerability in times of global crises and promote the country’s trade” , Special Secretary in the Department of Commerce Shri Rajesh Agrawal said at the 2nd ExL 2025: A Conference on Export Logistics, held on Thursday. He said, “Indian flag vessels are very limited in number, and this leads to around USD 50 billion of trade deficit that we do have in the services sector solely due to maritime logistics.” Calling the situation “unsustainable” as it also makes India “vulnerable“, he said countries which have strong control over logistics systems fare better during global disruptions.

“India’s ambition to become a global trading powerhouse depends not just on production, but on how efficiently and sustainably we can move our goods. Logistics is no longer a cost centre – it is a strategic enabler of competitiveness and exports. As we pursue this vision, our efforts must align with the Net Zero 2070 commitment by building a green, low-emission logistics ecosystem that powers growth without compromising sustainability. We need to focus on how we have a minimum degree of control over the global logistics ecosystem, which is also necessary to support our international trade as we move towards the 2047 Viksit Bharat goal,” Agarwal said here at CII’s Export Logistics Conclave.

The country, he said, has limited control over shipping and air cargo spaces. Citing an example, Agrawal said during Covid times, shippings cost went up multiple times and it impacted India’s exports. “Whenever there is an international crisis or there is a Red sea crisis, the first thing that suffer is a logistics cost…it goes up for our exporters,” he said, adding, “Whenever the world logistics suffers a constraint, the countries which have better control over logistics tend to gain more than the countries which have not much control over logistics.”

In another example, he said if a container from India has to reach Africa, and for that, if it has to transit through Singapore or Dubai, it would lead to delays and add to the cost for exporters.