Mains Marathon

Approach

Approach:

• Introduction: Introduce the topic by briefly mentioning the importance and challenges of the logistics sector in India.
• Body: Discuss the main objectives and key initiatives under the National Logistics Policy.
• Conclusion: Conclude by highlighting the potential benefits and implications of the policy, as well as the need for effective implementation.

Answer:

The logistics industry is crucial for the efficient movement of products and services across the nation and in the global markets. The industry includes transportation, warehousing, and value-added services like packaging, labelling, and inventory management.

As per the Economic Survey 2021, the logistics industry accounts for 13-14% of the country's GDP which is very high when compared to other countries like China and US.

India’s logistics sector faces many challenges such as high costs, inefficiencies, fragmentation, lack of coordination, poor infrastructure, regulatory hurdles, skill gaps and environmental concerns. These challenges affect the competitiveness and growth of various sectors of the economy that depend on logistics services.

The National Logistics Policy 2022, launched in September 2022, aims to address these challenges and improve India’s logistics efficiency and competitiveness. The policy has the following objectives:

• To reduce the logistics cost from the existing 13-14% of GDP to less than 10% by 2022, which is comparable to the global average of 8%.
  • It is estimated that every 1% reduction in logistics costs can boost GDP growth by 0.25%.
• To enhance the quality and performance of logistics services across various modes of transport and sectors of the economy.
• To create a single-window e-logistics market that integrates all stakeholders and facilitates seamless movement of goods and services.
• To promote digitization, standardization, automation and innovation in the logistics sector.
• To develop a skilled and trained workforce for the logistics sector.
• To foster sustainability and resilience in the logistics sector by adopting green practices and mitigating risks.

The policy envisages a comprehensive agenda for the development of the entire logistics ecosystem through a Comprehensive Logistics Action Plan (CLAP). The CLAP will focus on four key pillars: infrastructure, services, human resource and sustainability. 

Some of the key initiatives under the CLAP are:

• Developing an integrated national logistics network that leverages the PM GatiShakti National Master Plan for multimodal connectivity infrastructure.
• Establishing a National Logistics Council and a National Logistics Coordination Committee to ensure policy coherence and coordination among various ministries, departments, states and stakeholders.
• Creating a National Logistics Portal as a single-window platform for information, facilitation, compliance and grievance redressal.
• Implementing a National Logistics Data Analytics Platform to enable data-driven decision making and performance monitoring.
• Harmonizing standards, regulations and procedures across various modes of transport and sectors of the economy.
• Introducing a National Logistics Certification Framework to ensure quality and accreditation of logistics service providers and professionals.
• Launching a National Logistics Skill Development Program to enhance the employability and productivity of the logistics workforce.
• Promoting green logistics practices such as energy efficiency, renewable energy, waste management and carbon footprint reduction.

The National Logistics Policy has the potential to transform the logistics sector in India by making it more efficient, cost-effective, competitive, inclusive and sustainable. It can also contribute to India’s economic growth, employment generation, export diversification and regional integration. However, the successful implementation of the policy will require effective coordination, collaboration and commitment among all stakeholders at various levels.