New Delhi: On the occasion of PM Narendra Modi’s birthday, he will release the much awaited National Logistics Policy at Vigyan Bhawan in New Delhi today. The Prime Minister’s Office claims that a national policy was needed as India has higher logistics costs than other prosperous countries. The strategy aims to make Indian goods more competitive, therefore promoting economic growth and expanding job prospects. India spends 13 to 14 percent of its GDP on logistics expenses. Whereas countries like Japan and Germany, which are famous for their highly developed infrastructure and processes for logistics, spend around 8% to 9% of their GDP on logistics.
The logistics industry includes more than 20 government organizations, 37 export promotion councils, 40 partner government agencies (PGAs), 500 certifications and more than 10,000 goods. Logistics policy seeks to reduce logistics costs while increasing the competitiveness of domestic products in the international market. This will be the country’s first all-inclusive strategy for the logistics market.
The Prime Minister’s Office quoted, “Reducing the logistics cost in India is imperative to improve the competitiveness of Indian goods in both domestic and export markets. Lower logistics cost improves efficiency, value addition in various sectors of the economy.” and encourages enterprise.”
Additionally, it said that since 2014, the administration has placed high priority on enhancing both ease of doing business and ease of living. “The National Logistics Policy, a comprehensive effort to address the issues of high costs and inefficiencies by laying down a comprehensive interdisciplinary, cross-sectoral and multi-jurisdictional framework for the development of the entire logistics ecosystem, is another step in this direction. ”
The National Logistics Policy has the potential to revolutionize this industry. Notably, the government unveiled the PM Gati Shakti Master Plan last year to support multimodal connectivity infrastructure in line with the larger objectives of NLP.
(with inputs from agencies)