What is National Logistics Policy?: All you need to know

Prime Minister Narendra Modi launched the National Logistics Policy(NLP). Read below to know what is National Logistics Policy (NLP), its scope, and its significance in India.

Prime Minister Narendra Modi launched the National Logistics Policy(NLP)
Prime Minister Narendra Modi launched the National Logistics Policy(NLP)

Prime Minister Narendra Modi launched the National Logistics Policy(NLP) on September 17, 2022. The project aims to promote seamless movement of goods across the country and improve the competitiveness of Indian goods in domestic and global markets.

The prime minister said it is an important step towards the “making of a developed India’ while adding that the policy has come with a “new energy for every sector”. PM Modi said that India is the world’s 5th largest economy and the country is setting and achieving new export targets. The world has started accepting the fact that India is emerging as a global manufacturing hub and NLP will provide it with a fresh impetus. 

What is National Logistics Policy

Since the logistics cost in India is high as compared to other developed economies, the Government felt the need to introduce the National Logistics Policy. It is imperative to decrease the logistics costs in India for enhancing the competitiveness of Indian goods both in domestic and export markets. Reduced logistics cost improves efficiency cutting across different sectors of the economy, encouraging value addition and enterprise. 

National Logistics Policy: Scope

  1. Prevention of wastage of agro-products 
  2. Enabling quick last-mile delivery. 
  3. Diminish transport-related challenges.
  4. Save time and money for the manufacturers.
  5. Increase a country’s exports and boost domestic manufacturing.
  6. Make India a more efficient destination for global investors.

National Logistics Policy: Significance

  1. e-Sanchit enables paperless export-import trade processes.
  2. Faceless assessment in customs has been rolled out.
  3. e-Way bill and FASTag are introduced to improve the efficiency of the logistics sector.

What did PM Modi say about National Logistics Policy?

With the launch of NLP, PM Modi said that the policy can be a driving and guiding force and NLP should not be seen only as a document. The policy is a culmination of 8 years of effort. He said that policy plus performance is equal to growth. PM Modi pointed out that the total capacity of Indian ports has increased significantly and the average turn-around time of container vessels has come down from 44 hours to 26 hours. Later he also added that the Unified Logistics Interface Platform (ULIP), will bring all the digital services related to the transportation sector into a single portal.

Logistics sector in India

India spends approx 13 to 14 percent of gross domestic product on logistics costs. While countries that are known for their developed logistics infrastructure and systems such as Germany and Japan, spend only around eight to nine percent of the GDP on logistics costs. The logistics sector has more than 20 government agencies, 37 export promotion councils, 40 Partner Government Agencies(PGA), 500 certifications, a $160 billion market, and over 10,000 commodities. 

 

India is ranked 44th in logistics costs according to the World Bank Logistics Index of 2018. The country is behind the countries such as the United States and China which are at the 14th and 26th positions. 

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