National Logistics Policy

Recently, the Prime Minister launched the National Logistics Policy (NLP)...

Key Points:

About

National Logistics Policy

Aim:

- To ensure seamless movement of goods and services across the country.
- Cut logistics costs from as much as 13-14 per cent of its GDP to a single digit.

Four Critical Features:

Integration of Digital System (IDS):

- - Under the IDS, 30 different systems of seven departments are integrated; these include data from the road transport, railways, customs, aviation and commerce departments.
- Unified Logistics Interface Platform (ULIP): It will bring all the digital services related to the transportation sector into a single portal,
- Ease of Logistics (ELOG): Through this portal, industry associations can directly take up any such matters which are causing problems in their operations and performance with the government agencies
- System Improvement Group (SIG):

It will complement the PM Gati Shakti national masterplan initiative.

NLP will focus on world-class infrastructure, modern warehousing, digitalisation, regulations, tracing and tracking, and ease of shipping.

Why the National Logistics Policy was launched?

The need for a national policy was felt since the logistics cost in India is high compared to other developed economies.

While the Indian logistics sector has a 14.4 per cent contribution to the country’s Gross Domestic Product (GDP), it incurs a cost of 14 per cent of the GDP

Potential of Indian Logistics Sector:

Provides livelihood to more than 2.2 crore people.

Improving the sector will facilitate a 10 % decrease in indirect logistics costs leading to the growth of 5 to 8% in exports.

Further, it is estimated that the worth of the Indian logistics market will be around 215 billion dollars in the next two years compared to about 160 billion dollars at present.

Benefits:

Boost manufacturing & Employment

Create infrastructure

Enhances economic growth

Improved competitiveness of Indian goods both in domestic as well as export markets.

Reduced logistics cost improves efficiency cutting across various sectors of the economy

Encouraging value addition and enterprise

Prevents waste of agricultural products

PM Gati Shakti – National Master Plan:

The PM Gati Shakti plan is a campaign to lend more speed (Gati) and power (Shakti) to projects by connecting all concerned departments on one platform.
It envisages a centralised portal to unite the infrastructural initiatives planned by central ministries and departments.
- This way, the infrastructure schemes of various ministries and state governments will be designed and executed with a common vision.
Use of Technology: It seeks to leverage technology by including spatial planning tools with ISRO imagery.