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National logistics policy gets Cabinet approval
The prime minister had on September 18 announced the policy that will cut across sectors and will complement the PM GatiShakti National Master Plan, a multi-modal connectivity infrastructure development programme.
The Union Cabinet chaired by Prime Minister Narendra Modi Wednesday approved the national logistics policy which aims to remove gridlocks in the movement of goods, lower logistics costs and bring in a tech-enabled unified system across supply chains.
The prime minister had on September 18 announced the policy that will cut across sectors and will complement the PM GatiShakti National Master Plan, a multi-modal connectivity infrastructure development programme.
The national logistics policy aims to reduce cost of logistics in India to be comparable to global benchmarks by 2030. The country’s costs in transport, storage and material handling are estimated to be around 14% of GDP, higher than advanced economies’ average of 8-10%, according to data from the World Bank.
The policy also envisages to improve the cuntry’s Logistics Performance Index ranking and figure among top 25 countries by 2030, aside from creating data-driven decision-making for an “efficient logistics ecosystem”, according to a Cabinet statement .
The policy has been developed through a consultative process held between several ministries, industry representatives and economists, the statement said. It will utilize the existing institutional frameworks such as the empowered group of Union secretaries that oversees the PM GatiShakti plan.
“The vision is to develop a technologically enabled, integrated, cost-efficient, resilient, sustainable and trusted logistics ecosystem for accelerated and inclusive growth,” the statement said.
The new plan will also focus creation of warehousing that confirm to new standards as well as digitization and automation of the entire the logistics value chain.
The policy lays down an “action agenda” for immediate on-ground implementation of initiatives such as a unified logistics interface platform (ULIP), which will be basically a large secure network which shippers, consignees as well as government agencies can access for real-time information.
Fourteen states have already developed their state logistics policies on the lines of the national policy approved today and 13 states are preparing drafts, the statement said.
The new initiatives will pivot around not just large firms but also facilitate ease of logistics for micro, small and medium Enterprises, the largest source of formal employment in the country. Some of the key sector identified under the new policy are agriculture and allied activities, FMCG and electronics. “With greater predictability, transparency and reliability, wastages in supply chain and need for huge inventory will reduce,” the Cabinet statement added.
