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What is National Logistics Policy in-short?

by | Sep 27, 2022 | Economics

On September 17 Prime Minister Narendra Modi launched the national Logistics policy and this could be the best thing that could happen for the 200 billion dollar industry is critical for the economy but has been ignored for many years by the stakeholders are now Ganga about the policy and believe that this could be a game changer but what’s in the policy

the competitiveness of India’s logistic sector which employs over 2 million people in 2018 India was ranked 44th in the

World Bank Logistics performance index what is more worrying is that India’s logistic cost or on the higher side at 13 to 14 per cent of the GDP however, in comparison, mature economies report eight to ten per cent India’s Logistics sector is highly

fragmented and unorganized there is also a complex regulatory environment multiple stakeholders have multiple regulations and this makes things worse for the sector, logistics sector is also heavily dependent on the road

sector there is also a low level of Technology adoption among various stakeholder’s unpredictable Supply chains and poor first and last male connectivity adds to the logistics cost the BJP government since it came to power in 2014 has emphasized improving Logistics through initiatives like Sagar Mala for shipping Bharat Mala for Road and udon for Aviation but the launch of prime minister Gati Shakti which as you know is the national master plan for multimodal connectivity on two thousand 21 October is quite significant this the program brings 16 Ministries including Railways and roadways together to plan coordinate and Implement infrastructure connectivity projects for the national

Logistics policy is the next logical step in the development of the entire Logistics ecosystem so what does the policy aim to achieve the policy wants to reduce Logistics costs in India by five per cent of the GDP over the next

five years it also focuses on improving India’s ranking in the logistics performance index aims to enhance the competitiveness of the logistics sector and bring in a modern and efficient Network this is essential to make India become a 5 trillion dollar economy by 2025. so far the stakeholders are excited they expect that this policy could lead to inter-ministerial collaboration more importantly the policy will spur investment across the logistics sector

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