On his 72nd birthday, Hon'ble Prime Minister Narendra Modi launched the much-awaited National Logistics Policy . The policy emphasises on reduction of logistics cost, promoting seamless movement of goods and improving competitiveness of Indian goods in domestic and global markets.
Why India need a new policy for logistics sector?
During the launch of the National Logistics Policy, PM said that over the past eight years, the government had been working towards improving connectivity through ‘systemic infrastructure development’ with schemes such as Sagarmala, Bharatmala.
However, logistics cost, which includes transportation, warehousing, inventory, and order processing cost, continues to remain a pain point, considering that higher costs not only adds to the transportation time, thereby making the final price of the goods more expensive, but also hurts competitiveness of domestic goods in the global market. The government aims to address most of these issues through the use of technology and a strict monitoring system.
The policy, which has been in the works for around three-four years, has been brought in tandem with the PM’s ambitious GatiShakti national master plan that was launched to build robust infrastructure and fill the missing gaps in logistics that will ultimately draw more investments into the country.
What are the main objectives of National Logistics policy?
We know Logistics cost in India is high as compared to other developed economies. India’s logistics cost as a proportion of gross domestic product (GDP) is believed to be around 13-14 per cent. The government aims to bring it down to single digits as soon as possible. Besides, the endeavour is to be among the top 25 countries by 2030 in the global Logistics Performance Index ranking. India was ranked 44th in the last edition of the index.
I think National Logistics Policy will help india to become a global manufacturing hub, India could expect $180-$200 billion FDI in next 7-8 years.
National Logistics Policy will help india to become a USD 10 trillion economy by 2032 ,USD 20 trillion economy by 2040 & USD 30 trillion economy by 2047.
India will be developed nation with more than $21000 Per capita income by 2047.
