The need for a national logistics policy was felt since the logistics cost in India is high as compared to other developed economies. It is imperative to reduce the logistics cost in India for improving the competitiveness of Indian goods both in domestic as well as export markets. Reduced logistics cost improves efficiency cutting across various sectors of the economy, encouraging value addition and enterprise.
The PM launched the National Logistics Policy 2022 on 17th September, 2022. Logistics efficiency is a function of infrastructure, services (digital systems/processes/ regulatory framework) and human resource. The PM GatiShakti National Master Plan (NMP) for multimodal connectivity infrastructure to various economic zones, has been launched. PM GatiShakti National Master Plan is a transformative approach for improving logistics efficiency and reducing logistics cost, with focus on integration of existing and proposed infrastructure development initiatives of different agencies, to ensure first and last mile connectivity, for seamless movement of people and goods.
While development of integrated infrastructure and network planning is envisaged to be addressed through the PM GatiShakti National Master Plan, for efficiency in services (processes, digital systems, regulatory framework) and human resource, the National Logistics Policy is the logical next step. This will provide a comprehensive agenda for development of the entire logistics ecosystem.
The vision of the National Logistics Policy
The vision of the National Logistics Policy is “To develop a technologically enabled, integrated, cost efficient, resilient, sustainable and trusted logistics ecosystem in the country for accelerated and inclusive growth.”
The key objectives of the policy are:
a) Integration: to promote inter-modality, multi-modality through seamless integration of processes, digital systems, policies/plans and legislative requirements.
b) Optimization: to promote and ensure optimal utilization of logistics infrastructure/assets/facilities through synergistic usage.
c) Standardization: of physical assets, processes, taxonomy, bench marking of service quality standards, in the logistics sector.
d) Modernization: to promote greater adoption of information communication technology, upgraded infrastructure, use of drones, automation, innovation, green logistics, international best practices and facilitate integration with the global value chain.
e) Formalization: to reduce fragmentation in the sector, promote excellence, mainstream logistics in higher education, up-skilling and re-skilling of existing workforce.
f) Democratization: to promote inclusivity by addressing needs of logistics supply and user side (agriculture and manufacturing sector and internal and external trade) and encourage public-private participation.
Targets for achieving the vision of the National Logistics Policy
(i) Reduce cost of logistics in India to be comparable to global benchmarks by 2030; (ii) improve the Logistics Performance Index ranking – endeavor is to be among top 25 countries by 2030; and
(iii) create data driven decision support mechanism for an efficient logistics ecosystem.
Implementation of the National Logistics Policy
1 The Policy will be implemented through a Comprehensive Logistics Action Plan (CLAP). The interventions under the CLAP are divided into specific key action areas, including (i) Integrated Digital Logistics Systems, (ii) Standardization of physical assets & benchmarking service quality standards, (iii) Logistics Human Resources Development and Capacity Building, (iv) State Engagement, (v) EXIM (Export-Import) Logistics, (vi) Service Improvement framework, (vii) Sectoral Plan for Efficient Logistics and (viii) Facilitation of Development of Logistics Parks.
Expectations
National Logistics Policy is a comprehensive effort to address issues of high cost and inefficiency by laying down an overarching interdisciplinary, cross-sectoral and multi-jurisdictional framework for the development of the entire logistics ecosystem. The policy is an endeavour to improve the competitiveness of Indian goods, enhance economic growth and increase employment opportunities.
It has been the vision of the Prime Minister to develop world-class modern infrastructure through the integration of all stakeholders in holistic planning and implementation so that efficiency and synergy are achieved in the execution of the project. The PM GatiShakti – National Master Plan for muti-modal connectivity – launched by the Prime Minister last year, was a pioneering step in this direction. PM GatiShakti will get further boost and support with the launch of the National Logistics Policy.
