Economic Survey 2023-24 : PM Gati Shakti and National Logistics Policy have helped improve logistics efficiency
NEW DELHI : India’s domestic manufacturing and export competitiveness has improved significantly due to the PM Gati Shakti and National Logistics Policy (NLP), the Economic Survey, tabled by Finance Minister Smt Nirmala Sitharaman in Parliament on July 22, said.
“The Government has utilised the PM Gati Shakti National Master Plan portal for network planning and congestion projections, leveraging big data from e-waybills and FASTag to estimate future transportation demand and enhance logistics efficiency,” the Survey said.
India’s ranking in the World Bank’s ‘Logistics Performance Index’, improved from 54 in 2014 and 44 in 2018, to 38 in 2023, the Survey highlighted. “The Government aspires to secure a position within the top 25 countries on the index, which comprises 139 countries, by 2030,” it said.
The Survey reviews how the economy performed in this fiscal year and the road ahead for the next year. It highlighted that as on March 2024, 43 ministries have been on boarded on PM GatiShakti National Master Plan portal.
“1,530 data layers (642 Ministry data layers & 888 State data layers) of Ministries and States have been uploaded on the PMGS-NMP portal,” the survey said.
The survey added the government’s aim to reduce logistics cost through the NLP and improve coordination between ministries will be key in boosting domestic manufacturing in the country.
It added that under the National Logistics Policy, the government has integrated 36 logistics-related digital systems/portals across eight ministries providing real-time information on 1,800 data fields on the Unified Logistics Integrated Platform (ULIP).
The Survey added that the government has also developed a Logistics Data Bank to track 100 percent of India’s containerised export-import (EXIM) cargo. “To streamline EXIM logistics, infrastructure gaps are addressed through action plans developed by the National Committee on Trade Facilitation (NCTF). NCTF Working Groups formulated a National Trade Facilitation Action Plan 2020-23. The action plan for 2024-26 is being developed,” the Survey said. It also said that so far 26 states have notified their State Logistics policies.
The Survey also said that government has undertaken various measures to enhance production capacity, promote exports and reduce logistics costs involved in international trade.
Initiatives like setting export targets, and monitoring these targets followed by course correction has helped micro, small and medium enterprises (MSME) exporters explore new markets and diversify.
The Survey added that other steps like provision of export credit insurance services for short-term as well as medium and long-term exports, and encouraging banks to provide affordable and adequate export credit to MSME has also helped reduce logistics costs and boost EXIM traffic.
It added that the government has also streamlined trade processes through initiatives such as Turant, Customs, Single Window Interface for Facilitation of Trade (SWIFT), pre-arrival data processing, e-Sanchit, and Coordinated Border Management to help improve logistics efficiency in India.
Other initiatives like railway track electrification, reduced release times by the Land Ports Authority of India (LPAI) and the launch of NLP Marine for port-related logistics also helped reduce the logistics cost in the country.
“As a result of these initiatives, there has been an improvement in India’s performance in the United Nations Economic and Social Commission for Asia Pacific’s (UNESCAP) Global Survey on Digital and Sustainable Trade Facilitation,” the Survey said.
It highlighted that India scored 93.5 percent in 2023 vis a vis 90.3 percent in 2021.