National Logistics Policy
- Posted By
Polity & Governance
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.