THE NATIONAL LOGISTICS POLICY

The National Logistics Policy aims to reduce logistics expenditures to single digits to improve global competitiveness. The policy recognizes the importance of PPP in achieving these objectives and encourages collaboration between businesses, government agencies, and society as a whole. By working together, stakeholders in the logistics sector can create a more efficient and competitive logistics network, which will help drive economic growth and create new job opportunities

- VIPIN VOHRA

The National Logistics Policy under PM Gati Shakti National Master Plan was launched by our Hon'ble Prime Minister so that the Indian logistics sector could become a key driver of economic growth. This can be done by making businesses, government agencies, and society, as a whole, work together better and more closely.

One of the aims of The National Logistics Policy is to reduce the logistics expenditures contribute from the present 13% -14% of India's GDP to single digit to become globally competitive. The government aims to be among the top 25 countries in the Logistics Performance Index (LPI) by 2030.

Lower logistics costs can help promote economic growth by making it easier and more cost-effective for businesses to transport goods through Air. This can help increase trade and investment, which can in turn create more jobs and opportunities for the Indian economy. In order to achieve this, trade bodies like FFFAI etc are in constant dialogue with Airport Economic Regulatory Authority (AERA) to act as a regulator in ensuring the reduction in the Air Cargo Handling charges, levied by Cargo Terminal Operators (CTOS) on different stakeholders.

However, in accordance with the recent Telecom Disputes Settlement & Appellate Tribunal (TDSAT) order dated 13-01-2023, Cargo Handling Services, being declared as 'non-Aeronautical' in nature, do not fall within the purview of AERA. Hence, CTOS are now at the liberty of levying Cargo tariff, as per their own convenience, without consulting the stakeholders, thereby, leading to considerable increase in the overall Logistics cost, truly defeating the purpose /aims of the said National Logistics Policy.

Similarly, Airlines and Ocean lines are levying the freight charges without any benchmark OR in consultation with the concerned stakeholders, which also add up to the hike in Logistics cost w.r.t handling of cargo through Air/Sea.