What is Nation Logistics Policy?

On September 17th, Indian Prime Minister Narendra Modi celebrated his 72nd birthday. On this occasion, he welcomed eight cheetahs from Namibia to India.

What is National Logistics Policy

The government is introducing a new, tech-enabled approach to logistics operations to reduce logistics costs in the country.

He noted the recent reduction in paperwork for movement of goods across states due to the implementation of GST and went on to say that drone transportation is likely to become a significant logistics mode soon. “We already have a progressive drone policy,” Modi said.
According to the PM, India must bring down the logistics cost of 13-14% of GDP to single digits. “It is a low-hanging fruit to be globally competitive,” said Modi.

With an all-encompassing action plan, we can finally put an end to the inefficient digital logistics systems that have been bogging us down. This new system will provide a unified logistics interface platform as well as ease of logistics and standardization of physical assets. Additionally, it will allow for state engagement, human resource development and capacity building, export-import logistics, sectoral plans for efficient logistics, and facilitation of the development of logistics parks.

This has been a longstanding issue in the country given that logistics costs in India are high at 9-10 per cent against those in the US and Europe at only 11 per cent, and Japan. With no single governing body managing the logistics sector, it becomes difficult to run the process smoothly as it falls under the purview of many different ministries including road transport, shipping, railways, civil aviation, ports and commerce and industry, and finance.

The high logistics cost in India has been a long-standing issue for the country. In the US and Europe, logistics costs about 9-10 percent while in Japan, it is about 11 percent. India does not have a single body to manage the logistic sector which makes it difficult to run the process smoothly. Different ministries are responsible for managing it, including road transport, shipping, railways, civil aviation, ports and commerce and industry, and finance.

National Logistics Policy

Commerce and Industry Minister Piyush Goyal said that the main motive of the upcoming logistics policy is to promote the seamless movement of goods and enhancing the competitiveness of the industry across the nation. It will focus on some key areas like process re-engineering, digitisation and multi-modal transport, according to The Economic Times. Addressing the members of the Board of Trade, Goyal said, “On September 17, the prime minister is going to release the country’s logistics policy.”

Major Steps in National Logistics Policy

Integration of Digital System (IDS):

  • 30 different systems of seven different departments will be integrated digitally including the road transport, railway, customs, aviation, foreign trade and commerce ministries.
  • It will improve shorter cargo movement.

Unified Logistics Interface Platform (ULIP):

  • It will also lead to smooth cargo movement.

Ease of Logistics (ELOG):

  • A new policy will be implemented to simplify the rules and ease the logistics business.

System Improvement Group (SIG):

  • monitoring all logistics-related projects regularly and tackling all obstacles.

Further, the policy aim to develop skills among youth and create employment opportunities.

 

National Logistics Policy 2022

In order to give a boost to the country’s logistics sector, Prime Minister Narendra Modi unveiled the National Logistics Policy (NLP) on Saturday. This is billed as the country’s first holistic approach for the $200 billion sector.
“We are the world’s 5th largest economy. India is setting new targets for exports and we have been able to achieve those targets. India is emerging as a global manufacturing hub and the world has started recognizing that fact. NLP will provide a fresh impetus to it,” said Modi.

This policy will focus on streamlining some key areas such as process re-engineering, digitization, and multi-modal transport. It is a crucial move as high logistics cost impacts the competitiveness of domestic goods in the international market. By improving these areas of operations, we can help to improve the competitive edge of our products on the global stage.

“A national logistics policy is necessary because the logistics cost in India is high compared to other developed economies. This puts Indian goods at a disadvantage in both domestic and export markets. The policy is intended to reduce logistics costs and improve competitiveness,” according to an official statement. In order to achieve these goals, the policy focuses on reducing the cost of transportation, improving infrastructure, and creating a more efficient supply chain.

The policy of reducing logistics cost strives to improve efficiency and value addition in several sectors of the economy, as well as promote enterprise. The goal is to address the issues of high cost and inefficiency by creating a framework that covers multiple disciplines, industries, and jurisdictions. This would then develop the logistics ecosystem as a whole.

 

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