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National Logistics Policy

  • 20 Sep 2022

On17th September, 2022, the government released the National Logistics Policy.

Vision

  • To drive economic growth and trade competitiveness of the country through a truly integrated, seamless, efficient, reliable and cost-effective logistics network, leveraging best-in-class technology, processes and skilled manpower.


Key Objectives

  • Creating a single point of reference for all logistics and trade facilitation matters in the country which will also function as a knowledge and information sharing platform
  • Driving logistics cost as a % of GDP down from estimated current levels of 13-14% to 10% in line with best-in-class global standards and incentivize the sector to become more efficient by promoting integrated development of logistics
  • Creating a National Logistics e-marketplace as a one-stop marketplace.
  • Creating a data and analytics center to drive transparency and continuous monitoring of key logistics metrics
  • Encouraging industry, academia and government to come together to create a logistics Center of Excellence, and drive innovation in the logistics sector
  • Creating and managing on an ongoing basis, an Integrated National Logistics Action Plan which will serve as a master plan for all logistics-related development.
  • Providing an impetus to trade and hence economic growth by driving competitiveness in exports
  • Doubling employment in the logistics sector by generating additional 10-15 million jobs and focusing on enhancing skills in the sector and encouraging gender diversity

Policy Thrust Areas

  • Focusing on critical projects to drive an optimal modal mix and to enable first mile and last mile connectivity
  • Driving the development of Multi Modal Logistics Parks (MMLPs)
  • Driving interventions to reduce logistics costs and promote logistics efficiency for the movement of key commodities
  • Creating a single window Logistics e-marketplace
  • Setting up a Logistics Data and Analytics Center
  • Creating a Center of Trade Facilitation and Logistics Excellence (CTFL) and leveraging the expertise of multilateral agencies
  • Creating an Integrated National Logistics Action Plan and aligning with respective state development plans
  • Support strengthening of the warehousing sector
  • Enhancing transport and rolling stock infrastructure
  • Streamlining EXIM processes to promote trade competitiveness
  • Reducing dwell time for interstate cargo movement by road
  • Promoting standardization in the logistics sector
  • Ensuring seamless movement of goods at Land Customs Stations (LCS) and Integrated Check Points (ICP)

Benefits

  • The policy is expected to bring down the logistics cost, which is as high as 14-15 percent of India's GDP, to around 8 percent of GDP in the next five years.
  • It will also provide a roadmap to reduce India's high dependence on road transport for cargo movement and switch to a mix of rail, shipping, road, and air transport.
  • It will improve India’s trade competitiveness, create more jobs, improve India’s performance in global rankings and pave the way for India to become a logistics hub.