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National Logistics Policy (India)

Honorable Prime Minister Narendra Modi, on 17th Sep 2022, launched the National Logistics Policy (NLP) that aims to promote not only the seamless movement of goods across the country but also improve the competitiveness of Indian goods in domestic as well as global markets. The policy will be implemented through the Comprehensive Logistics Action Plan(CLAP)

It will integrate 30 systems belonging to different ministries to create an integrated digital logistics system for faster, cheaper, and safer logistics services. All these departments have their own digital data, which will be Integrated under IDS. This will help smooth cargo movement. India aims to improve its ranking in the logistics performance index to 25-30 from 44 in 2018 and reduce logistics costs to 10 percent of the Gross Domestic Product over the next five years. The logistics sector is estimated at 13-14 percent of GDP.

This policy also makes way for a framework to set up Multi-modal Logistics Parks (MMLPs), which will be adopted by states and central ministries and aims to integrate various modes of transport. A process will also be put in place for accelerated warehousing development, which will address critical aspects, such as standards, benchmarking and rating, and adoption of technology-enabled solutions.

The NLP will also bring in global warehousing infrastructure and operations standards by facilitating technology integration. However, we have to wait and see how far the implementation will be successful as it depends on organization-wide ownership of and commitment to change, prioritization, and sufficient resources and capabilities…As Honorable Prime Minister said “Policy is just a beginning, policy plus performance is equal to progress”.

Contributor: Margarete Sebastian

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