National Logistics Policy: Framework To Make India Globally Competitive

Launched on 17 September, the much-talked-about policy framework is set to cater to all the key stakeholders of the Indian Logistics Segment. One of the USPs of the latest framework is the emphasis on streamlining processes for seamless coordination. Additionally, the overall logistics cost reduction and job generation are also focused points under this policy.

During the launch of the policy, Prime Minister Narendra Modi stated, “From 13 to 14 per cent logistics cost, we should all aim to bring it to single-digit as soon as possible. This is a low-hanging fruit if we have to become globally competitive. The PM Gatishakti National Master Plan will support the National Logistics Policy. The Unified Logistics Interface Platform (ULIP) will bring all the digital services related to the transportation sector into a single portal, which would further free the exporters from a cumbersome process.”

Kishan Aswath, co-founder and CEO, Mojro Technologies says, "The National Logistics Policy is a much-needed policy intervention by the GOI. It is ambitious and once implemented well should significantly reduce the overall cost of logistics. Emphasis on technology usage - the creation of ULIP, and the promotion of AI and Blockchain are most welcome. These steps should help improve India's Logistics Performance Index in the coming years."

The policy vision includes the initiation of ease of logistics services (e-logs), through which industry associations can directly take up operations and performance-related issues with government agencies. The system in place would aid in the speedy resolution of such cases. Industry experts predict that the policy would lead the country to become efficient across supply chains and revolutionise the Indian logistics ecosystem.

Arshdeep Singh Mundi, Managing Director, Jujhar Logistics says, "National Logistics Policy is a significant step towards strengthening the logistics sector by means of integration of efficient measures. Cost reduction from 14-18 percent of GDP to 8 percent by 2030, to meet the global benchmarking along with an ambitious focus on improving the Logistics Performance Index (LPI) ranking are some of the transformational steps for the entire ecosystem. Alongside these, means such as data-driven decision support systems (DSS), Unified Logistics Interface Platform (ULIP), and Logistics Services (E-Logs) are some of the key capacity building blocks that will eventually address prevailing challenges."

Additionally, experts also suggest that the policy would play a significant role in bringing down the transportation, warehousing, and inventory costs, subsequently resulting in a reduction of the overall logistics cost in the upcoming years. The renewed focus on human capital and operational standards enhancement would aid in the formalisation of the sector. The emphasis on seamless multimodal transportation and modern connectivity will also thrust the segment due to newly opened transportation options. The policy also aims to augment warehousing capacities while taking the products closer to the consumption points.

Furthermore, the government's paperless initiatives like e-sanchit aided EXIM trade process, faceless assessment for customs, e-way bill provisions, FASTag, etc. have brought about significant changes to the segment. It becomes important to note how technology plays a vital role to manage complexities better and unify stakeholders. Industry experts predict that the policy would emerge as a driving force for the segment's progress and help India set standards for going across the globe. The SMEs and MSMEs are also set to be thrust in the direction of accelerated growth, in the face of costs getting rationalised and stakeholders getting together through technology. It becomes safe to say that the policy aims to increase the global market competitiveness of domestic goods, which would subsequently aid the businesses in strengthening Indian exports and job creation.