India's New National Logistic Policy: A step toward becoming a Global Leader

India's New National Logistic Policy: A step toward becoming a Global Leader

On the 72nd birthday of PM Narendra Modi, he inaugurated the most awaited Indian National Logistic Policy. It comes after pushing forward with the local manufacturing unit and Atmanirbhar's goal. With the local manufacturing push, brands like Apple, Mercedes, and others have planned to set their bases in India for manufacturing. The New National Logistic Policy will accelerate overall growth and bring on more global trade.

The government wants to use NLP to reduce the cost of logistics from 13-14% of the nation's gross domestic product (DGP) to single-digit levels. The three primary goals set by the policymakers are: First, by 2030, to bring India's logistics costs into line with international standards. The second goal is to raise the logistics performance index's ranking and place it among the top 25 nations by the end of the decade. The third goal is to develop a data-driven decision support system for a productive logistics ecosystem.

The main objectives of the National Logistics Policy 2022, according to Minister of Commerce and Industry Piyush Goyal, are to promote the free movement of goods and improve industry competitiveness nationwide.

Some key points of the National Logistics Policy

  • One of the seven departments with 30 separate systems that will be digitally networked as part of the IDS is the ministry of commerce. The others are aircraft, railways, roadways, customs, and international trade ministries.
  • It will help to convey the information more quickly.
  • The freight transfer process will be made simpler via the ULIP, or Unified Logistics Interface Platform.
  • Ease of Logistics (ELOG) will be present. The policy will simplify the rules and facilitate the logistics sector.
  • All logistics-related initiatives must be frequently assessed to identify any obstacles which must be removed by the System Improvement Group (SIG).
  • The policy's main objective is to give young people the chance to work and develop their talents

The aims of the new National Logistics Policy

  • This National Logistics Policy's primary areas of concentration for 2022 will be process re-engineering, digitization, and multi-modal transportation.
  • Making this decision is essential because excessive logistics costs make domestic goods less competitive in the global market.
  • The National Logistics Policy 2022 was thought to be necessary because India's logistics costs are higher than those of other developed nations.
  • India's logistical expenses must be significantly reduced if it wishes to increase the competitiveness of its exports and domestic products.
  • Economic efficiency is increased by lower logistics costs, facilitating value generation and business expansion.
  • This policy aims to list India among the top 10 logistics-driven countries by 2030 and match up with a country like South Korea.
  • The aim is to integrate all logistics and transport sectors into a single portal. It will reduce the hassle faced by manufacturers and exporters.
  • The policy will also ease the logistics service block transporters face. With the new E-Logs, manufacturers can directly take up the operational issues with agencies and resolve them.

Taking India's Logistics Industry to a New Standard

A McKinsey Global Institute (MGI) report says that India's logistics industry is set to reach $320 billion by 2025. With the introduction of NLP 2022, the government will set a goal.