NLP@3: TRANSFORMING INDIA'S GLOBAL TRADE STRATEGY

Launched on September 17, 2022, by Prime Minister Narendra Modi, India's National Logistics Policy (NLP) represents a pivotal step in modernising the country's logistics and supply chain ecosystem. With the ambitious goal of reducing logistics costs from 13–14 per cent of GDP to single digits, the NLP aims to enhance efficiency, streamline processes, and bolster India's global competitiveness.

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Three years into its implementation, the policy has driven significant advancements in infrastructure, digital transformation, and multimodal connectivity, aligning closely with the PM GatiShakti master plan to create a seamless national logistics framework.

KEY ACHIEVEMENTS IN FIRST THREE YEARS

Since its launch, the NLP has delivered measurable results, transforming India's logistics landscape. Below are some of the policy's key achievements:

Cost reduction and efficiency gains

One of the NLP's flagship achievements is the projected reduction in logistics costs. By 2025, logistics costs are expected to decline to approximately 9 per cent of GDP, a significant improvement from the 13–14 per cent range in 2022. This reduction has been driven by several factors:

• Removal of interstate checkpoints: The elimination of interstate checkpoints has reduced transit times and costs for road transport, which accounts for over 60 per cent of freight movement in India.

• GST reforms: Streamlined Goods and Services Tax (GST) processes have simplified tax compliance, reduced delays, and improved supply chain predictability.

• Infrastructure investments: The development of dedicated freight corridors (DFCs), such as the Eastern and Western DFCs, has enhanced rail freight capacity, reducing reliance on costlier road transport.

These reforms have collectively improved operational efficiency, enabling faster and more cost-effective movement of goods across the country.

Digital transformation through ULIP