What is National Logistics Policy launched by PM Narendra Modi Pipa News

What is National Logistics Policy launched by PM Narendra Modi

Prime Minister Narendra Modi has launched the National Logistics Policy (NLP), which aims to not only promote seamless movement of goods across the country but also boost the trade sector by improving the competitiveness of Indian goods in the domestic and global markets. On the same day that Cheetahs were reintroduced in India, he mentioned the event by stating that even luggage should move as quickly as Cheetahs. Logistics costs currently account for 13 to 14% of India’s GDP, almost double the costs in developed countries.

The effort behind the policy

The Prime Minister briefed on the policy and said that behind the logistics policy was eight years of hard work and the policy was an unexpected endeavor. To improve connectivity, the government is doing systematic infrastructure development through some projects like Sagarmala, Bharatmala, dedicated freight corridor etc.

Increase in capacity of ports

Stating that the total capacity of Indian ports has increased significantly, Modi said the average turnaround time of container ships has come down from 44 hours to 26 hours. Eco-friendly and cost-effective transportation can be maintained through waterways. He mentioned that many waterways are being constructed in the country for this.

What causes the logistic cost to increase?

One of the reasons for high logistics costs in India is the lack of awareness in the respective sectors. In fact, there is no single department in the government that manages the field.

Logistics needs are handled by several ministries including road transport, shipping, railways, civil aviation, posts and commerce and industry and finance.

There are problems, there are solutions!

The introduction of GST has improved the movement of goods across the country. But there are more problems. Although the logistics sector in India is growing at an estimated annual rate of 10.5 percent, the sector remains largely unorganized due to the absence of policy impetus. There is no economic benefit from this. The cost increases.

According to Nirmala Sitharaman why logistic policy is necessary?

According to Finance Minister Nirmala Sitharaman, the National Logistics Policy will “clarify the roles of the central government, state governments and key regulators”.

It is also mentioned that it will help India’s large, medium and small enterprises to be competitive and create employment opportunities.

What is the need for a logistics policy?

Logistics broadly includes the key facilities required for trade: transport services for the movement of goods, storage facilities particularly required for trade in perishable goods such as foodstuffs, fruits and vegetables, and facilities such as licensing and smooth functioning of government services to facilitate trade.

Adoption of technology is strengthening the logistics sector. For example, e-sanchit is enabling paperless export-import trade processes and faceless assessment at customs has been rolled out.

Competitiveness of India’s exports is very low

When Modi launched the Prime Minister’s Gati Shakti National Master Plan for multi-modal connectivity in October 2021, he mentioned that logistics spending is 13% of GDP.

The competitiveness of India’s exports is greatly reduced due to high logistical costs. The competitiveness of India’s exports is very low.

What the survey indicated

In a Commerce and Industry Ministry survey last year, titled ‘Easier Logistics Across Various States’, Gujarat, Punjab and Haryana ranked among the top three states.

The parameters include quality of road and railway infrastructure, road freight rates, quality of warehousing infrastructure etc.

The survey suggested that states should focus on ways such as developing sector-specific skill infrastructure and streamlining logistics-related approval and clearance processes.

What are the features of National Logistics Policy?

The new logistics policy has four features: it’s digital system (IDS) integration; Unified Logistics Interface Platform (ULIP); Ease of Logistics (ELOG); and the System Improvement Group (SIG).

Under IDS, 30 different systems of seven departments including data from road transport, railways, customs, aviation and commerce departments are integrated into it.

Unified Logistics Interface Platform ULIP (ULIP):

The Prime Minister said the Unified Logistics Interface Platform (ULIP) will “bring all digital services related to the transport sector into a single portal”.

Similarly, a new digital platform Ease of Logistics Services (e-Logs) has also been launched where industry associations can reach out to the government to resolve issues.

How is the government focusing on improving logistics?

The Prime Minister has announced earlier programs and projects aimed at improving logistics aspects such as FASTag for electronic toll tax collection and faceless assessment for customs.

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In terms of scale, the largest of these projects is the Gati Shakti Master Plan, and as mentioned by the Prime Minister, a large amount of information related to various infrastructure projects of the state governments has been prepared.

GatiShakti Project proposal

Last year the GatiShakti scheme was proposed in the Prime Minister’s Independence Day speech on August 15. Modi mentioned that in the coming days, we are launching a 100 lakh crore national infrastructure project, Pradhanmantri Gati Shakti Yojana, which will lay the foundation for comprehensive infrastructure and show an integrated path for our economy.

A single platform for Ministries

A single platform was launched for ministries to monitor the progress of various infrastructure projects.

Later, the Center aims to add 200 airports, helipads and water aerodromes in the next 4 to 5 years. It also aims to double the natural gas pipeline network of around 19,000 km.

Logistics policies of 13 states are in draft stage

Some states like Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Kerala, Madhya Pradesh, Maharashtra, Manipur, Mizoram, Rajasthan, Telangana and Uttar Pradesh have already formulated their logistics policy. Logistics policies of 13 states are still in draft stage.

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CII’s Director General, Chandrajit Banerjee, mentioned that the logistics policy, along with other pillars of PM’s momentum-shakti, has the potential to usher in an unprecedented era of ‘ease of movement’, as mentioned, facilitating ease of doing business and simply facilitating living.

The country ensures fast and seamless movement of goods and people across modes of transport—water, air, roads, railways.

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