Current Affairs

National Logistics Policy

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    Polity & Governance
  • Published
    19th Sep, 2022


The Prime Minister recently launched the National Logistics Policy (NLP).


  • The National Logistics Policy aims to promote smooth movement of goods across India and boost competitiveness of the Indian goods in the domestic and international markets.
  • It aims to bring down the logistics cost, which in turn would improve efficiency of various sectors of the economy, boosting value addition and economic growth.
  • The policy was announced for the first time in the Union Budget 2020.
  • Its focus areas are-
    • Integration of Digital System (IDS)
      • The IDS will integrate 30 different systems of seven different departments, such as customs, aviation, road transport, railways, international trade and commerce ministries.
    • Unified Logistics Interface Platform (ULIP)
      • The ULIP aims to ensure continuous monitoring of cargo movement.
    • Ease of Logistics (ELOG)
      • The ELOG would seek to simplify procedures and achieve ease of doing business.
    • System Improvement Group (SIG)
      • The SIG would monitor all projects related to logistics on a regular basis and ensure the removal of hurdles faced in the sector.
  • An empowered group of secretaries (EGoS) has been constituted under the PM Gati Shakti to monitor and review the implementation of the NLP.

About India’s logistics sector

  • India’s logistics sector provides jobs for more than 22 million people. 
  • The sector is complicated, as it is regulated by more than 20 government agencies, 40 partner government agencies, 37 export promotion councils, 500 certifications etc. 
  • India’s current logistics cost as a proportion of the GDP is some 13-14 per cent. 
  • The Indian Government is planning to decrease it to single digit. 
  • The sector’s present market size is 160 billion USD. 
  • Its improvement can ensure a 10 per cent decrease in indirect logistics cost and increase the growth of exports by 5 to 8 per cent.

Verifying, please be patient.