India needs to embrace new tech, AI can save Rs 20,000 crore in cargo handling: EAC-PM member

New Delhi: India needs to embrace new technology and can save up to Rs 20,000 crore by using AI for cargo handling at ports, said Member of Economic Advisory Council to PM Gourav Vallabh on Tuesday.

Speaking at session 'AI-Powered Ports: Reimagining Efficiency and Operations' at the AI Impact Summit here, Vallabh said India is emerging as a global leader in the field of new technology.

"There is an approximate saving by uses of AI of Rs 20,000 crore in our handling.. And every year we can save Rs 15,000 crore as far as the logistic cost is concerned," he said.

The question is not whether AI will transform India's ports, Vallabh said adding "the question is whether we are going to lead it or not." He noted that India's logistics cost at 7.97 per cent of GDP is competitive, "but for Viksit Bharat 2047 aim, our ports should be intelligent and should have intelligent ecosystem." He said India needs accelerated policy initiatives to reduce the logistics cost.

He pointed out that 95 per cent of total volumes of India's trading is by maritime, but "in spite of annual growth of 13.5 per cent, our ports are not comparable to the biggest ports of the world as far as the handling capacity is concerned". So, gap is both of infrastructure as well as intelligence, he added.

Vallabh listed out several areas of AI application in ports to improve performance. "AI is right now in front of us, it is up to us, we have to accept it," Vallabh noted.

Subrat Tripathy, President Business Development APSEZ Ltd, shared idea of introducing virtual concierge in the ports industry.

"We've been thinking of developing what is called a virtual concierge... in all interactions on a platform which are not human-based. This is not about replacing human beings, but having a particular tool where we bring in the multiplicities of interactions, vessels, agents, transporters, multiple stakeholders that we have," Tripathy said.

He said AI can also help in predicting weather conditions, navigation and safe operations of ports.

Susanta Kumar Purohit, Chairperson, VO Chidambaranar Port Authority, said, "Artificial intelligence is not merely a technological upgrade for ports; it is a structural shift in how we plan, operate and govern maritime infrastructure." Aprajita Rana, AZB & Partners, spoke on legal aspects on usage of AI in the industry including safety and authenticity of the data.

"I think, going forward, what we really need to promote in the industry is having some sort of AI governance mechanism...You actually need to have some governance standards about how you're going to deploy AI and to what extent, what kind of functionalities," Rana said.