All you need to know about National Logistics Policy

New Delhi, Sep 17: In giving a strong boost to the logistics sector of the country, the National Logistics Policy being launched today, will play a big role. Since logistics constitutes the core of almost all sectors of the economy, the need for a national logistics policy was long felt seriously. Since the logistics cost in India is high as compared to other developed economies, it reduces its cost and trade competitiveness. The new policy is sure to improve country's performance in global rankings and pave the way to become a logistics hub, besides creating jobs in millions.

All but none felt the need that if India is to become a five trillion dollar economy, it is imperative to reduce the logistics cost in the country for improving the competitiveness of Indian goods both in domestic as well as export markets. It is a widely conceived fact that reduced logistics cost improves efficiency cutting across various sectors of the economy, encouraging value addition and enterprise.

India's logistics sector is considered to be highly defragmented and the aim of this national policy is to reduce the logistics cost from the present 14% of the GDP to less than 10% by 2022. India's logistics sector is very complex with more than 20 government agencies, 40 PGAs, 37 export promotion councils, 500 certifications, 10000 commodities, 160 billion market size.

The sector also involves 1.2 crore employment base, 200 shipping agencies, 36 logistics services, 129 ICDs, 168 CFSs, 50 IT ecosystems and banks & insurance agencies. Further, 81 authorities and 500 certificates are required for EXIM.

The Indian logistics sector provides livelihood to more than 2.2 crore people and improving the sector will facilitate 10 % decrease in indirect logistics cost leading to the growth of 5 to 8% in exports. Further, it is estimated that the worth of Indian logistics market will be around 215 billion dollar in next two years compared to about 160 billion dollar at present.

Since 2014, the government has put significant emphasis on improving both Ease of Doing Business and Ease of Living. National Logistics Policy is a comprehensive effort to address issues of high cost and inefficiency by laying down an overarching interdisciplinary, cross-sectoral and multi-jurisdictional framework for the development of the entire logistics ecosystem.

The policy is an endeavour to improve competitiveness of Indian goods, enhancing economic growth and increasing employment opportunities. It has been the vision to develop world class modern infrastructure through integration of all stakeholders in holistic planning and implementation so that efficiency and synergy is achieved in the execution of the project.

The PM GatiShakti - National Master Plan for multi-modal connectivity - launched by the Prime Minister, is also a pioneering step in this direction. PM GatiShakti will get further boost and complementarity with the launch of National Logistics Policy.

Formulated by the Commerce and Industry Ministry, the National Logistics Policy will improve India's trade competitiveness, create more jobs, improve India's performance in global rankings and pave the way for India to become a logistics hub.