Indian Economy News

Prime Minister Mr. Narendra Modi launches National Logistics Policy; aim to bring cost to single-digit

  • IBEF
  • September 19, 2022

On Saturday, Prime Minister Mr. Narendra Modi unveiled the National Logistics Policy (NLP), which aims to boost both the smooth flow of commodities throughout the nation and the competitiveness of Indian products on both domestic and international markets.

The strategy "has not sprung out of thin air and there are eight years of hard effort behind it," he claimed. The government has been developing infrastructure systemically to increase connectivity through programmes like Sagarmala, Bharatmala, and Dedicated Freight Corridor.

"Today, the capacity of Indian ports has greatly risen, and the turnaround time for container ships has decreased from 44 to 26 hours on average. We can convey people and goods efficiently and environmentally through rivers. Many new waterways are also being developed throughout the nation for this reason,” he added.

Mr. Modi added that the industry of logistics has been strengthened by the deployment of technology. For instance, faceless assessment at customs has been implemented, and e-sanchit has enabled paperless export-import trade processes. E-way bills and FASTag are also frequently used on roads to boost the effectiveness of the logistics industry.

For around three to four years, a broad policy for the logistics industry has been under development. It was believed that India's logistics costs were higher than those of other developed nations. The cost of logistics in India is estimated to be between 13-14% of the country's GDP. Now, the goal of the government is to reduce it to single digits as quickly as feasible.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.