Policy to ensure a technologically enabled, integrated, profitable, resilient and sustainable logistics ecosystem for accelerated and inclusive growth
Aims to reduce logistics costs and achieve global benchmarks, improve India’s global ranking in logistics sector, contribute to a larger share of global trade
MSMEs and farmers will benefit from improved logistics efficiency
The Union Cabinet, chaired by Prime Minister, Shri Narendra Modi, has approved the National Logistics Policy. The policy establishes an overall interdisciplinary, cross-sectoral, multi-jurisdictional and comprehensive strategic framework for the logistics sector. The policy complements the PM GatiShakti National Master Plan. While PM GatiShakti’s national master plan aims at integrated infrastructure development, the national logistics policy is envisaged to bring efficiency in logistics services and human resources through streamlining of processes, regulatory framework, development skills, the integration of logistics in higher education and the adoption of appropriate technologies.
The vision is to develop a technologically enabled, integrated, profitable, resilient, sustainable and reliable logistics ecosystem for accelerated and inclusive growth.
The policy sets goals and includes a detailed action plan to achieve them. The targets are:
• reduce the cost of logistics in India to be comparable to global benchmarks by 2030,
• improve the ranking of the logistics performance index, to be among the top 25 countries by 2030, and
• Create a data-based decision support mechanism for an efficient logistics ecosystem.
The National Logistics Policy was developed through a consultative process during which several rounds of consultations were held with various Indian Government Ministries/Departments, industry stakeholders and academia, and takes cognizance of global best practices .
To monitor the implementation of the policy and mainstream the efforts of stakeholders, the policy will utilize the existing institutional framework i.e. the Empowered Group of Secretaries (EGoS) established under PM GatiShakti NMP. EGoS will also set up a “Service Improvement Group” (SIG) modeled after the Network Planning Group (NPG) to track metrics related to process, regulatory and digital improvements in the service industry. logistics that are not covered by the NPG ToR. .
This policy paves the way for reducing logistics costs in the country. Emphasis will be placed on the proper development of warehouses with optimal spatial planning, the promotion of standards, digitization and automation throughout the logistics value chain and better tracking and tracing mechanisms.
Other measures to facilitate seamless coordination among different stakeholders and rapid resolution of issues, streamlined EXIM processes, human resource development to create a pool of employable skilled labor, are also set out in the Politics.
The policy also clearly establishes an action plan for the immediate implementation on the ground of various initiatives. In fact, to ensure that the benefits of this policy have maximum reach, important initiatives under the policy, including the Unified Logistics Interface Platform (ULIP), the Ease of Logistics Platform Services, the electronic manual on warehousing, the training courses on PM GatiShakti and logistics on the i-Got platform, were launched alongside the launch of the National Logistics Policy. Thus indicating readiness for immediate implementation on the ground.
Additionally, all states and UTs have been fully integrated. Fourteen States have already developed their respective National Logistics Policies on the model of the National Logistics Policy and for 13 States it is at the draft stage. The institutional frameworks under the leadership of Prime Minister GatiShakti at central and state level, which will also oversee the implementation of the policy, are fully operational. This will ensure rapid and effective adoption of the policy by all stakeholders.
This policy supports the strengthening of the competitiveness of micro, small and medium-sized enterprises and other sectors such as agriculture and related sectors, fast-moving consumer goods and electronics. With greater predictability, transparency and reliability, waste in the supply chain and the need for huge inventories will be reduced.
Greater integration of global value chains and a higher share in global trade, in addition to facilitating accelerated economic growth in the country, is another envisioned outcome.
This is expected to reduce logistics costs to achieve global benchmarks and improve the country’s Logistics Performance Index ranking and global positioning. This policy sets a clear direction to transform the Indian logistics sector, improve logistics efficiency, reduce logistics costs and improve overall performance.