A Glance on the New National Logistics Policy

In a vision to develop a world-class infrastructure, the central government has come up with a few announcements in the logistics sector where Prime Minister Narendra Modi launched the National Logistics Policy the last weekend. To enhance ease of doing business, the government is now focussing more on the logistics sector which provides livelihood to more than 22 million people across the country.

To make India a self-reliable market leader, we need to improve our transportation methods and policies. The new logistics policy and the PM -Gati Shakti Yojana launched last year will be a pioneering step towards becoming an export and manufacturing hub. The main objective of the National Logistics Policy is to bring the cost of transportation lower and be competitive in the global markets.

The draft of the policy has been prepared in consultation with various ministries like Railways, Shipping, Roads, and Civil Aviation. Forty-Six partnering government agencies’ inputs were taken into consideration before finalizing the final policy.

Features of the Policy:

1. The policy aims to set up a single window for the E-Markets
2. Setting up of Logistics Data and Analysing Centre
3. Development of Multi-Model Logistics Parks
4. Ensuring seamless movement of goods at Integrated Check Points (ICP)
5. Enhancing transport and rolling stock infrastructure

What is the Need for National Logistics Policy:

1. To reduce the cost of logistics from the present 14% of GDP to a single digit in the coming years
2. To increase exports with competitive prices
3. To Create a one-stop marketplace with simplification of paperwork
4. To facilitate a smooth and fast flow of goods
5. To strengthen the warehouse sector in the country
6. To improve India’s ranking in the Logistics Performance global index to 25-30
7. Reducing losses due to Agir wastages
8. Providing a boost to the MSME sector by enhancing cost-effective logistic network
9. To Facilitate Green Logistics

Any policy which focuses on the reduction of cost will be a booster for any developing country especially India which has high export targets and a Mission of becoming an Aathmanirbhar Bharat. This policy is focussing on ensuring quality logistics infrastructure with special attention to first and last mile connectivity making the sector more formalized, standard and cost-friendly. On the flip side, the use of information technology to create a transparent marketplace will also is expected to be a game changer to create fair and clear trade for all the stakeholders in any industry.

On the other hand, the economy will get help India become a global manufacturing powerhouse.  While in the current scenario, major of the developed and developing countries are struggling with soaring inflation and falling growth, India is expected to outperform in growth terms. It has an excellent opportunity to come out as a leader in various sectors in terms of innovation and supply chain management.