WHAT INDIA CAN LEARN FROM GLOBAL LOGISTICS LEADERS

The pandemic accelerated tech adoption in sectors that depended heavily on logistics

- By ABHAYA AGARWAL,

THE NATIONAL LOGISTICS POLICY NLP) announced in September this year defines the future of logistics integration in India. Cost-effective and efficient logistics are also crucial in making the country a manufacturing hub and increasing the role of exports in enhancing the economy of the country. India’s current logistics cost is 16 per cent to 18 per cent of GDP but improved automation, digitisation, and mobility of the network of highways, expressways and other initiatives are expected to lower logistics costs to 10 per cent of GDP.

Globally, many countries and enterprises have undertaken initiatives to bring about a sea change in their logistics strategies to become more competitive and there is ample evidence of the significant benefits received. India can take a leaf from the book of successful case studies globally to give the NLP a quick start for a faster and more effective implementation. Defining a few of them below.

Robust Integrated Platform

Over the past few years, several large-scale initiatives have been launched to develop well-connected transportation infrastructure. Gati Shakti, the National Master Plan for multimodal connectivity, is a digital platform for integrated planning and implementation of infrastructure connectivity projects. The Bharatmala Pariyojana 34,800 km) aims to optimise the efficiency of freight and passenger movement on highways. Sagarmala’s objective is to unlock the potential of India’s coastline and waterways with port-led development at its core.

To bring a perspective, Germany, about one-tenth the size of India, has an integrated transportation infrastructure consisting of a rail network of 40,327 km; highways, railways and inland waterways of nearly 60,000 km; aroad network of 12,000 km; and inland waterways of 7,450 km. Amore focused approach, therefore, is needed toward building a well-integrated assets platform.