Cabinet approves National Logistics Policy
New Delhi, September 21, 2022
The Union Cabinet today approved the National Logistics Policy that lays down an overarching interdisciplinary, cross-sectoral, multi-jurisdictional and comprehensive policy framework for the sector.
The policy complements the PM GatiShakti National Master Plan. While the PM GatiShakti National Master Plan is aimed at integrated infrastructure development, the National Logistics Policy proposes to bring efficiency in logistics services and human resources through streamlining processes, regulatory framework, skill development, mainstreaming of logistics in higher education and adoption of suitable technologies, an official press release siad.
The vision is to develop a technologically enabled, integrated, cost-efficient, resilient, sustainable and trusted logistics ecosystem for accelerated and inclusive growth, it said.
The policy sets targets and includes a detailed action plan to achieve them. The targets are to reduce cost of logistics in India to be comparable to global benchmarks by 2030, improve the Logistics Performance Index ranking, to be among the top 25 countries by 2030 and create a data-driven decision support mechanism for an efficient logistics ecosystem.
The National Logistics Policy has been developed through a consultative process after several rounds of consultations with various Ministries/Departments, industry stakeholders and academia while taking cognisance of global best practices.
To monitor the implementation of the policy and integrate efforts across stakeholders, the policy will utilize the existing institutional framework, namely the Empowered Group of Secretaries (EGoS) created under the PM GatiShakti NMP.
The EGoS will also set up a “Services Improvement Group” (SIG) on the pattern of the Network Planning Group (NPG) for monitoring of parameters on processes, regulatory and digital improvements in the logistics sector that are not covered under the ToR of the NPG.
"This policy paves way for a reduction in logistics costs in the country. The focus will be on enabling adequate development of warehouses with optimal spatial planning, promotion of standards, digitization and automation across the logistics value chain and better track & trace mechanisms.
"It also includes measures to facilitate seamless coordination between different stakeholders and speedy issue resolution, streamlined EXIM processes and human resource development to create an employable pool of skilled manpower.
"The policy also clearly lays down an action agenda for immediate on-ground implementation of various initiatives. To ensure that the benefits of this policy have maximum possible outreach, 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 along with the launch of the National Logistics Policy," it said.
All the States and UTs have been fully onboarded. While 14 States have already developed their respective State Logistics Policies on the lines of the National Logistics Policy, it is in the draft stage for 13 States. The institutional frameworks under PM GatiShakti at the Centre and State level, which will also monitor the implementation of the Policy, are fully operational. This will ensure fast and effective adoption of the Policy across all stakeholders.
This policy supports enhancing the competitiveness of Micro, Small and Medium Enterprises, and other sectors such as agriculture and allied sectors, fast-moving consumer goods and electronics. With greater predictability, transparency and reliability, wastages in the supply chain and the need for huge inventory will come down.
Greater integration of global value chains and higher share in global trade besides facilitating accelerated economic growth will be another outcome.
This is expected to reduce logistics costs to achieve global benchmarks and improve the country’s Logistics Performance Index ranking and its global positioning.
"This policy lays down a clear direction for transforming India’s logistics sector, improving logistics efficiency, reducing logistics costs and improving global performance," the release added.