To develop India’s trading sector, Prime Minister Narendra Modi launched the National Logistics Policy on September 17, 2022. Currently, 16% of the GDP is spent on logistics costs in the nation. In contrast to China, where it is 10%, America and Europe have an 8.0% unemployment rate. The government is strengthening the logistics sector with the use of technology, especially the use of drones, as well as assessment of customs duties and e-way bills electronically. The New National Logistics Policy and the reasons for its implementation are discussed in today’s article. We shall also talk about its advantages and features.
National Logistics Policy 2022
Inaugurating the eagerly expected National Logistics Policy was Indian Prime Minister Narendra Modi on September 17, 2022. The policy aims to reduce logistics costs in India so that it can meet international standards by 2030. Additionally, it aims to raise India’s position in the Logistics Performance Index from 44th internationally in 2018 and develop a data-driven decision support system for a productive logistics ecosystem.
Planning, coordinating, storing, and transferring resources—people, inventories, equipment, raw materials, etc.—from one place to another, from production points to consumption, distribution, or other production locations, are all included in logistics. The complete process of managing the procurement, storage, and delivery of resources to their intended place is referred to as logistics. Finding prospective distributors and suppliers and assessing their feasibility and accessibility are required.
A Comprehensive Logistics Action Plan (CLAP) that focuses on the following key areas will be used to carry out the Policy:
- Integrated Digital Logistics Systems
- Standardization of physical assets and benchmarking service quality standards
- Logistics Human Resources Development and Capacity Building
- State Engagement
- EXIM (Export-Import) Logistics
- Service Improvement framework
- Sectoral Plan for Efficient Logistics
- Facilitation of Development of Logistics Parks.
New National Logistics Policy Overview
|Name of Policy||National Logistics Policy|
|Launch Date||21 September 2022|
|Launch By||Prime Minister Narender Modi|
|Objectives||infrastructures to economic zones.|
What is The national logistics policy?
The National Logistics Policy was created to improve integration and cooperation between corporate entities, governmental organisations, and society at large in order to turn the Indian logistics industry into a significant driver of economic growth. The NLP aims to create a vibrant logistics ecosystem that includes all stakeholders across different sectors, such as industry, agriculture, trade and commerce, manufacturing, services, etc.
National Logistics Policy Objectives
The purpose of this new policy is to lower freight costs while fostering efficient product transportation. Along with this, the nation must create new employment opportunities and reduce freight costs, which will directly affect the prices of goods and result in lower prices. Considering that India’s logistics expenses are higher than those of other industrialised countries, the National Logistics Policy 2022 was deemed required. Lower logistics costs are intended to boost economic efficiency, enabling value creation and company.
Logistics Services Platform Launched
A new website called Ease of Logistics Services – E-Logs has been launched in compliance with the National Logistics Strategy. “Through this platform, business organisations will be able to raise any such concerns with the government agencies that are hindering their performance and operations. “A thorough framework has also been put in place for the fast settlement of such cases,” Modi had to remark.
How the Government is Improving Logistics
With the implementation of the National Logistics Policy, PM Gati Shakti will receive an additional lift and complement. Previous initiatives and plans to enhance logistics were FASTag for faceless customs inspection and electronic toll tax collection. There is a tonne of information available on state infrastructure investments. There are 1500 layers of federal and state government data on the PM Gatishakti website.
Understand how this sector contributes to the economy in order to understand the positive effects of this policy on the Indian economy. Let us inform you that approximately 14% of India’s Gross Domestic Product (GDP) is spent on logistics. However, it is relatively high when compared to other nations. Only 8 to 9 percent of the GDP is spent on logistics in nations like Japan and Germany.
National Logistics Policy Benefits and Features
Below is a list of the policy’s characteristics and focal points:
- The policy aims to act as a complementary to PM Modi’s Gati Shakti-National Master Plan, launched in 2021, to provide multimodal connectivity infrastructure to various economic zones.
- Logistics services will make it simple for businesses to voice their concerns and complaints to government organisations right away.
- Indian logistics is big but unstructured. The goal of the policy is to organise the mega-market and encourage the implementation of blockchain and AI in the nation.
- The scheme should reduce logistics expenses from 15% of India’s GDP to 8% in five years. To encourage exports and increase the effectiveness of domestic products, India must reduce logistics costs. Lower logistics costs increase productivity across a variety of industries, fostering entrepreneurship and wealth development.
- By 2030, the government hopes to rank among the top 25 nations according to the Logistics Performance Index (LPI).
- The Unified Logistics Interface Platform will be part of the NLP. It would streamline exporters’ time and resources by combining transportation-related online services onto a single platform.
- The government intends to raise the nation’s Logistics Performance Index (LPI) rating such that it is among the top 25 nations by 2030.