10 Important Facts About the National Logistics Policy 2022
National Logistics Policy (NLP): The much-awaited National Logistics Policy was launched on September 17 2022, by Indian Prime Minister Narendra Modi. It aims to fast-track the transformation of the Indian logistics sector by providing a framework for developing a sustainable and prosperous logistics industry.
What is logistics?
The term "logistics" describes the total process of acquisition, storage, and delivery of resources to their target destination. It includes raw materials, stock, tools, and even people, among other things.
What is the National Logistics Policy?
The National Logistics Policy has been drafted to transform the Indian logistics sector into a key driver of economic growth through greater integration and coordination between business entities, government agencies, and society at large.
The NLP aims to create a vibrant logistics ecosystem that includes all stakeholders across different sectors, such as industry, agriculture, trade and commerce, manufacturing, services, etc. The NLP also provides a framework for facilitating more effective movement of goods by improving the quality of traffic management system along with facilitating better movement of goods through modern transport infrastructure across all modes of transport, including roadways, railways, waterways, etc.
The policy aims to act as a complementary to PM Modi’s Gati Shakti-National Master Plan, launched in 2021, to provide multimodal connectivity infrastructure to various economic zones.
Today India became home to Cheetahs, an animal synonymous with speed. The National Logistics Policy launched today will give speed to India’s development journey.— Narendra Modi (@narendramodi) September 17, 2022
A sound policy with top level performance will enhance India’s progress. pic.twitter.com/F59RRExABo
Also read| From Purr to Roar: The 7 Big Cats Explained
10 facts about the National Logistics Policy
- In the next five years, the policy is anticipated to reduce logistics costs, which now account for about 15% of India's GDP, to about 8% of GDP. India must drastically cut its logistics costs if it wants to increase the competitiveness of its exports and domestic products. Reduced logistics costs increase efficiency across several economic sectors, promoting value creation and entrepreneurship.
- The government intends to raise the nation's Logistics Performance Index (LPI) rating such that it is among the top 25 nations by 2030.
- As part of the NLP, the government plans to develop the Unified Logistics Interface Platform (ULIP). It would combine all transportation-related digital services into a single platform, sparing exporters from a number of time-consuming and complex processes.
- A new digital platform called Ease of Logistics Services (e-logs) has been launched. This will enable businesses to raise queries and concerns with government organizations directly for quick solutions.
- The Indian logistics industry is vast but unorganized. Through the policy, it is intended to support blockchain and artificial intelligence adoption in the nation and help in organizing the mega-market.
- One of the key target areas of the logistics policy is to create data-driven Decision Support Systems (DSS), which will aid in developing a robust logistical ecosystem.
- A State Logistics Coordination Committee must be established in every state of India. The Logistics Ease Across Different States (LEADS) index will be utilized on a yearly basis to evaluate each state's performance. A blueprint for enhancing logistics efficiency will be provided by the central government, which will also allow states to establish their own logistics systems.
- There are around 20 primary government agencies and 40 secondary government entities that make up this industry. Additionally, there are 50 IT hubs, banks, insurance companies, 37 export promotion committees, 200 shipping companies, 36 logistics services, 129 inland container depots, and 168 container freight terminals.
- A Comprehensive Logistics Action Plan (CLAP) that focuses on the following key areas will be used to carry out the Policy:
- Integrated Digital Logistics Systems
- Standardization of physical assets and benchmarking service quality standards
- Logistics Human Resources Development and Capacity Building
- State Engagement
- EXIM (Export-Import) Logistics
- Service Improvement framework
- Sectoral Plan for Efficient Logistics
- Facilitation of Development of Logistics Parks.
10. According to the World Bank Logistics Performance Index of 2018, India, despite being a large economy, ranked 44th on the list with a rating of 3.18.
Many industry experts have taken over various social networking sites to laud the launch of the National Logistics Policy. Based on the initial feedback, it is safe to assume that this is a great initiative. However, how the policy pans out to meet the long-term goals remains to be seen.