National Logistics Policy

Prime Minister Modi recently launched the National Logistics Policy (NLP).

Key features

  • The National Logistics Policy aims to promote smooth movement of goods across India and boost competitiveness of the Indian goods in the domestic and international markets.
  • It aims to bring down the logistics cost, which in turn would improve efficiency of various sectors of the economy, boosting value addition and economic growth.
  • The policy was announced for the first time in Union Budget 2020.
  • Its focus areas are Integration of Digital System (IDS), Unified Logistics Interface Platform (ULIP), Ease of Logistics (ELOG) and System Improvement Group (SIG).
  • The IDS will integrate 30 different systems of seven different departments, such as customs, aviation, road transport, railways, international trade and commerce ministries.
  • The ULIP aims to ensure continuous monitoring of cargo movement.
  • The ELOG would seek to simplify procedures and achieve ease of doing business.
  • The SIG would monitor all projects related to logistics in a regular basis and ensure the removal of hurdles faced in the sector.
  • An empowered group of secretaries (EGoS) has been constituted under the PM Gati Shakti to monitor and review the implementation of the NLP.

India’s logistics sector

India’s logistics sector provides jobs for more than 22 million people. The sector is complicated, as it is regulated by more than 20 government agencies, 40 partner government agencies, 37 export promotion councils, 500 certifications etc. India’s current logistics cost as a proportion of the GDP is some 13-14 per cent. The Indian Government is planning to decrease it to single digit. The sector’s present market size is 160 billion USD. Its improvement can ensure a 10 per cent decrease in indirect logistics cost and increase the growth of exports by 5 to 8 per cent.

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