NATIONAL LOGISTICS POLICY - WHAT IMPACT WILL IT HAVE?

Policy changes were criticical for a sector that employs more than 22 million people

- By T.A. KRISHNAN,

LOGISTICS IS THE BACKBONE of the economy, accounting for 14.4 per cent of India’s GDP and affecting all industries, particularly agriculture, manufacturing, and services. More than 22 million people are employed as a result of it. By correcting the multi-modal connectivity mix and digitisation, the National Logistics Policy NLP) will help reduce costs in the logistics sector, power the country’s economic growth, and allow it to achieve its ESG goals. As it covers all industry bases while streamlining rules and addressing supply-side constraints, it will help make the sector an integrated, cost-efficient, resilient, and sustainable logistics ecosystem in the country. The NLP aims to increase the competitiveness of Indian goods, boost economic growth, and create new job opportunities. It is a critical step because high logistics costs reduce domestic goods’ competitiveness in the international market. A policy was necessary because India’s logistics costs are high when compared to other developed economies. Some of the key merits of the NLP are: