Ministry of Commerce & Industry released the National Logistics Policy, 2022. Focus of National Logistics Policy will be on efficiency in logistical services (processes, digital framework, regulatory framework) and human resources.
Targets of National Logistics Policy
- Reduce logistics cost to comparable global benchmarks by 2030.
- Improve India's ranking in World Bank's Logistic Performance Index, India should be ranked among top 25 countries by 2030.
- Create data driven decision support mechanism for an efficient logistics ecosystem.
Objectives National Logistics Policy
- Integration: Promote inter-modality, multi-modality through seamless integration of process, digital systems, policies/plans and legislative requirements.
- Optimisation: Promote and ensure optimal utilisation of logistics infrastructure/assets/facilities through synergetic usage.
- Standardisation: of physical assets, processes, taxonomy, benchmarking of service quality standards in logistics sector.
- Modernisation: to promote greater adoption of ICT, upgraded infrastructure, use of drones, automation, innovation, green logistics, best practices and facilitate integration with global value chain.
- Formalisation: to reduce fragmentation, promote excellence, mainstream logistics in higher education, upskilling and reskilling of existing workforce.
- Democratisation: to promote inclusivity by addressing needs of logistics supply and user side and encourage public-private participation.
Strategies for Achieving Targets
Reduction In Logistics Costs Is Planned To Be Through Measures that improve efficiency in transport, warehousing, inventory management and regulatory matters and order processing.
Implementation of National Logistics Policy
The policy will be implemented by Comprehensive Logistics Action Plan (CLAP) will implement the policy. The interventions under CLAP are divided into key action areas:
(i) Integrated Digital Logistics Systems through Unified Logistics Inteface Platform (ULIP) to be developed by Logistics Division under DPIIT.
(ii) Standardisation of physical assets & benchmarking service quality standards
(iii) Logistics human resource development & capacity building
(iv) State engagement
(v) EXIM (Export-Import) Logistics
(vi) Service improvement framework
(vii) Sectoral plan for efficient logistics
(viii) Facilitation of development of Logistics Park
Financial & fiscal incentives, through (a) review of GST rates (b) regulatory interventions to promote multimodal transportation, optimal modal mix, higher throughputs, energy efficiency etc.
Logistics Perfornce Index (LPI)
It is an index developed by World Bank to help countries identify the challenges and opportunities they face in their performance on trade logistics.Last edition of the rankings was released in 2018 and 160 countries participated.The ranking is based on survey of operators (global freight forwarders and express carriers) on logistics friendliness of countries.
Six dimensions of trade are included
1. Customs performance
2. Infrastructure quality
3. Ease of arranging shipments
4. Quality of logistics services
5. Tracking and tracing
6. Timeliness
India was ranked 44 in 2018 edition of LPI.
