The backbone of India's international trade is logistics, which aids in the diversification of not only the country's exports but also of products manufactured in the countries.
Potential
The NLP (National Logistics Plan) thus aims to promote seamless movement of goods and enhances the competitiveness of Indian industries. Also, it seeks to reduce the logistics cost from 16 per cent of Gross Domestic Product (GDP) to a global average of 8 per cent by 2030.
Challenges
Government Initiatives
To address these challenges, government started National Logistics Policy which would bring down logistics costs, give a fillip to international trade, help in making India ‘atmanirbhar’ or self-reliant, usher in prosperity in the nation and present new opportunities to our startups.
The Policy will be implemented through a Comprehensive Logistics Action Plan (CLAP). The interventions proposed under the CLAP are divided into eight key action areas-