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National Logistics Policy

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

Why in the News?

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.