Decoding the National Logistics Policy and its roadmap

Addressing logistic challenges is essential to ensure a successful manufacturing practice. This means that logistics management needs to have the right number of resources or inputs at the right time, get them to the appropriate location in proper condition, and deliver them to the correct internal or external customer. The Cover Story elaborates on how leading industry players appreciate the new logistics policy framework. read on...

- Neha Basudkar Ghate

On September 17, 2022, India’s Union Cabinet approved the National Logistics Policy, which lays down a comprehensive policy framework for the development of India’s 200 billion logistics sector. The policy provides for the seamless integration of multiple modes of transportation by leveraging technology, processes, and skilled manpower, the key to India’s ambitions to become a 5 trillion economy by 2025.

The National Logistics Policy targets to improve the Logistics Performance Index ranking, aiming to be among the top 25 countries by 2030. It also targets to reduce the cost of logistics in India to be comparable with global benchmarks by 2030 and to create a data-driven decision support mechanism for an efficient logistics ecosystem.

What is the National Logistics Policy?

Introduced in 2020, during the Budget speech by Nirmala Sitharaman, Finance Minister, India, the policy, according to the government, is supposed to bridge the efficiency gap by integrating a tech-enabled approach to logistics. The policy aims to reduce logistics costs in the country from the existing levels of 13-14% of GDP, which in turn will contribute to the government's ease of doing business initiatives.

This comprehensive action plan has proposed several benchmark features and services that enable companies to start adopting better systems and processes.

What are the target areas?

According to several reports, Narendra Modi, Prime Minister, India is expected to touch upon four main steps: 1. Integration of Digital System IDS): This system will anticipate integrating 30 different systems of seven different departments, which inlcudes road transport,

“ NLP is expected to fill in the voids in the supply chain management”