Lost your password?
Don't have an account? Sign Up

India’s Logistics Policy will accelerate growth, increase its participation in global trade : PM Modi

Share This News Story:

NEW DELHI : Prime Minister Shri Narendra Modi said the Union cabinet’s decision on India’s logistics policy will accelerate growth and increase the country’s participation in global trade. The Policy lays down an overarching interdisciplinary, cross-sectoral, multi-jurisdictional and comprehensive policy framework for the logistics sector. The policy complements the PM GatiShakti National Master Plan. While PM GatiShakti National Master Plan is aimed at integrated infrastructure development, the National Logistics Policy is envisaged to bring efficiency in logistics services, and human resources through streamlining processes, regulatory framework, skill development, mainstreaming logistics in higher education and adoption of suitable technologies.

The Policy sets targets and includes a detailed action plan to achieve them. The targets are:

  1. to reduce cost of logistics in India to be comparable to global benchmarks by 2030,
  2. improve the Logistics Performance Index ranking, to be among top 25 countries by 2030, and
  3. create data driven decision support mechanism for an efficient logistics ecosystem.

The efforts in the logistics sector will particularly benefit the farmers of the country and the micro, small and medium enterprises (MSME) sector, Modi said in a tweet. “Today’s Cabinet decision on a PLI scheme relating to the National Program on High-Efficiency Solar PV Modules will enhance manufacturing in the sector and boost investment,” the prime minister said in another tweet.

The cabinet earlier approved the National Logistics Policy, which aims at reducing transportation costs and improving the global performance of the sector, to reduce Logistics costs and achieve Global benchmarks, improve India’s global ranking in Logistics sector, help achieve larger share of global trade

Modi last week unveiled the policy, which seeks to cut transportation costs by promoting a seamless movement of goods across the country. The cabinet also approved modifications in the scheme for semiconductors and the display manufacturing ecosystem with uniform fiscal support of 50 percent of the project cost for all technology nodes under the ambitious program.

The policy also clearly lays down an action agenda for immediate on ground implementation of various initiatives. In fact, to ensure that the benefits of this policy have maximum possible outreach, important initiatives under the policy including the Unified Logistics Interface Platform (ULIP), the Ease of Logistics Services platform, e-handbook on Warehousing, training courses on PM GatiShakti and logistics on i-Got platform, were launched along with the launch of the National Logistics Policy. Thereby indicating the readiness for immediate on ground implementation.

Also, all States and UTs have been fully onboarded. Fourteen States have already developed their respective State Logistics Policies on the lines of the National Logistics Policy and for 13 States, it is in draft stage. The institutional frameworks under PM GatiShakti at Centre and State level, which will also monitor implementation of the Policy, is fully operational. This will ensure a fast and effective adoption of the Policy across all stakeholders.

This policy supports enhancing competitiveness of Micro, Small and Medium Enterprises, and other sectors such as agriculture and allied sectors, fast moving consumer goods and electronics. With greater predictability, transparency and reliability, wastages in supply chain and need for huge inventory will reduce.

Greater integration of global value chains and higher share in global trade besides facilitating accelerated economic growth in the country, is another outcome envisaged.

This is expected to reduce logistics cost to achieve global benchmarks and improve country’s Logistics Performance Index ranking and its global positioning. This policy lays down a clear direction for transforming India’s logistics sector, improving logistics efficiency, reducing logistics cost and improving global performance.

Share This News Story: