The much awaited National Logistics Policy (NLP), unveiled by Hon’ble Prime Minister Narendra Modi on September 17, 2022, reflects the government’s positive intent to address the industry’s key challenges. The policy aims to promote seamless movement of goods across the country and increase the competitiveness of Indian goods in domestic and global markets. It is a much-needed step as reduced logistics costs means a boost in overall efficiency, encouraging value addition and enterprise.
NLP is a comprehensive effort to address the problem of high costs and inefficiency by creating an interdisciplinary, cross-sectoral, and multi-jurisdictional framework for the development of the entire logistics ecosystem. India currently spends 13 to 14 percent of its Gross Domestic Product (GDP) on logistics, while Japan and Germany spend only 8 to 9 percent. It is the backbone of an economy, which makes up for 14.4 percent of the country’s GDP and provides employment to more than 22-million people. It is these aspects that the NLP aims to boost in terms of economic growth and creating new job opportunities by increasing the competitiveness of Indian goods.
The NLP will aid the PM GatiShakti National Master Plan (PMGS-NMP) in its target to enhance multi-modal connectivity. It will build a world-class modern infrastructure by involving all stakeholders in the planning and implementation process, resulting in project efficiency and synergy.
The new logistics policy will also assist the country’s logistics sector in becoming an integrated, cost-efficient, resilient, and sustainable logistics ecosystem by covering all bases, streamlining rules, and addressing supply-side constraints. Similarly, the focal push for digitisation through platforms such as Unified Logistics Interface Platform (ULIP) and Ease of Logistics Services (E-Logs) is critical to supporting the designed services improvement framework in upgrading regulatory interoperability, standardization of logistic processes, and bringing the entire multimodal network onto a single digital dashboard, thus enhancing visibility and transparency for all stakeholders.
The policy seeks to limit losses incurred while transporting perishable commodities by improving warehousing and cold chain efficiency. Currently, approximately 16% of India’s agricultural output is wasted at various stages of production. In this way, the policy would benefit the country’s farmers by allowing them to take their produce to the markets faster even as it reduces waste and delay.
Due to the government’s emphasis on capital expenditure over the last eight years, India’s logistical efficiency has increased significantly, with room for further improvement. The NLP truly has the potential to be a game-changer in India’s infrastructure transformation; the country is sure to benefit from the policy’s comprehensiveness and flexibility in the coming decades.
Views expressed above are the author’s own.
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