Union Cabinet gives nod to India's National Logistics Policy

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Union Cabinet gives nod to India's National Logistics Policy

Union Cabinet gives nod to India's National Logistics Policy

Industry News
Sep 22,22

The policy aims to reduce logistics costs and help in increasing India's share in the global trade. Policy to ensure technologically-enabled, integrated, cost-efficient, resilient and sustainable logistics ecosystem for accelerated and inclusive growth.

Union Cabinet gives nod to India's National Logistics Policy

New Delhi

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the National Logistics Policy (NLP), which lays down an overarching interdisciplinary, cross-sectoral, multi-jurisdictional and comprehensive policy framework for the logistics sector. The policy complements the PM GatiShakti National Master Plan (NMP). While PM GatiShakti National Master Plan is aimed at integrated infrastructure development, the National Logistics Policy is envisaged to bring efficiency in logistics services, and human resources through streamlining processes, regulatory framework, skill development, mainstreaming logistics in higher education and adoption of suitable technologies.

The vision is to develop a technologically enabled, integrated, cost-efficient, resilient, sustainable and trusted logistics ecosystem for accelerated and inclusive growth.

The Policy sets targets and includes a detailed action plan to achieve them. The targets are:

To reduce cost of logistics in India to be comparable to global benchmarks by 2030,
Improve the Logistics Performance Index ranking, to be among top 25 countries by 2030, and
Create data driven decision support mechanism for an efficient logistics ecosystem

The National Logistics Policy has been developed through a consultative process wherein several rounds of consultations were held with various Ministries/Departments of Government of India, industry stakeholders and academia, and takes cognisance of global best practises.

To monitor the implementation of the policy and integrate efforts across stakeholders, the policy will utilise the existing institutional framework i.e., Empowered Group of Secretaries (EGoS) created under the PM GatiShakti NMP. The EGoS will also set up a “Services Improvement Group” (SIG) on the pattern of Network Planning Group (NPG) for monitoring of parameters pertaining to processes, regulatory and digital improvements in logistics sector that are not covered under the ToR of the NPG.

National Logistics Policy paves way for reduction in logistics cost in the country. Focus will be on enabling adequate development of warehouses with optimal spatial planning, promotion of standards, digitization and automation across the logistics value chain and better track and trace mechanisms.

Further measures to facilitate seamless coordination between different stakeholders and speedy issue resolution, streamlined EXIM processes, human resource development to create an employable pool of skilled manpower, are also laid out in the policy.

The policy also clearly lays down an action agenda for immediate on ground implementation of various initiatives. In fact, to ensure that the benefits of this policy have maximum possible outreach, important initiatives under the policy including the Unified Logistics Interface Platform (ULIP), the Ease of Logistics Services platform, e-handbook on Warehousing, training courses on PM GatiShakti and logistics on i-Got platform, were launched along with the launch of the National Logistics Policy. Thereby indicating the readiness for immediate on ground implementation.

Also, all States and UTs have been fully onboarded. Fourteen States have already developed their respective State Logistics Policies on the lines of the National Logistics Policy and for 13 States, it is in draft stage. The institutional frameworks under PM GatiShakti at Centre and State level, which will also monitor implementation of the Policy, is fully operational. This will ensure a fast and effective adoption of the Policy across all stakeholders.

This policy supports enhancing competitiveness of Micro, Small and Medium Enterprises (MSMEs), and other sectors such as agriculture and allied sectors, fast moving consumer goods and electronics. With greater predictability, transparency and reliability, wastages in supply chain and need for huge inventory will reduce.

Greater integration of global value chains and higher share in global trade besides facilitating accelerated economic growth in the country, is another outcome envisaged.

This is expected to reduce logistics cost to achieve global benchmarks and improve country’s Logistics Performance Index ranking and its global positioning. This policy lays down a clear direction for transforming India’s logistics sector, improving logistics efficiency, reducing logistics cost and improving global performance.