The Union Cabinet has approved the National Logistics Policy focussed on bringing down logistics costs to comparable global benchmarks and improving the country’s global ranking in logistics by creating a data-driven decision support mechanism.
“Focus will be on enabling adequate development of warehouses with optimal spatial planning, promotion of standards, digitisation and automation across the logistics value chain and better track and trace mechanisms,” according to a statement issued by the government after the Cabinet meeting on Wednesday.
Targets of the NLP include reducing logistics costs and making it comparable to global benchmarks by 2030, and making India one of the top 25 countries in the Logistics Performance Index ranking.
PM Narendra Modi, while launching the policy on September 17, said the aim should be to bring down logistics cost from 13-14 per cent of GDP to single-digit as soon as possible.
Important initiatives under the policy, including the Unified Logistics Interface Platform (ULIP), the Ease of Logistics Services platform, e-handbook on warehousing, training courses on PM GatiShakti and logistics on i-Got platform, were launched last week simultaneously with the launch of the National Logistics Policy last week.
While the ULIP is aimed at bringing all digital services related to the transportation sector into a single portal, the Ease of Logistics Services will help industry associations to directly take up any such matters that are causing problems in their operations and performance with the government agencies.
“This policy supports enhancing competitiveness of MSME, and other sectors such as agriculture and allied sectors, fast moving consumer goods and electronics. With greater predictability, transparency and reliability, wastages in supply chain and need for huge inventory will reduce,” the release pointed out.
Greater integration of global value chains and higher share in global trade besides facilitating accelerated economic growth in the country, are other planned outcomes.