NEW NATIONAL LOGISTIC POLICY

 GOVERNMENT LAUNCHES NEW NATIONAL LOGISTIC POLICY 2022

Prime Minister Modi, on his 72nd birthday, launched the New National Logistics Policy(NLP) on 21st September 2022. According to Piyush Goyal, minister of commerce and industry, the National logistics policy 2022’s primary goal is to encourage the free flow of commodities and raise the competitiveness of the sector throughout the country. Process re-engineering, digitization, and multi-modal transportation will be some of the primary areas of emphasis. The new policy has not come out of the blue but there are eight years of hard work behind it. To ensure quick last-mile delivery, end transport-related challenges, save time and money for the manufacturers, and prevent wastage of the agro-products, concerted efforts were made and one of the manifestations of those efforts is the new National Logistics Policy. 

AIMS OF THE POLICY

1. The primary areas of the National Logistics policy would be process re-engineering, digitization, and multi-modal transportation,

2. Competitive domesstic products to become competitive in the global market,

3. This policy i to rmove higher logistics cost viz-a-viz other industrial nations.

4. The lower logistics cost will allow value adddition and efficiency in the business.

5. The policy lays out an extensive interdisciplinary, cross -sectoral, and multi-jurisdictional framework for the growth of entire logistics eco-system to cope with high costs and inefficiency.

As India is setting large export targets and becoming a manufacturing hub in the world due to the much-appreciated production-linked incentive scheme (PLI) it needs toward reducing logistics costs as a percentage of gross domestic product(GDP). India needs to compete more with developed countries and therefore we must welcome the NLP rather than hesitate to implement it.

The key elements of the logistic policy include Unified Logistics Interface Platform(ULIP), Ease of Logistics(ELOG), and System Improvement Group(SIG), ULIP launch will help exporters as it would bring together all the transportation-linked services. The Unified Logistics Interface Platform will bring all the digital services related to the transportation sector into a single portal, freeing the exporters from a host of very long and cumbersome processes. A new digital platform–Ease of logistics Services or E-Logs–has also been launched., through which industry associations can take up any issues pertaining to operations and performance with the government. A complete system has also been put in place for the speedy resolution of such cases.

An e-handbook has been introduced for standardization in the warehousing sector.  New courses in the management of logistics and supply chains and the integration of digital systems are also suggested. Policy formulation is just a beginning, policy plus performance equals progress.  This policy will increase the responsibilities of the government and the stakeholders in the field.  The policy acts as a driving force and gives guidance.

The adoption of technology has been strengthening the logistics sector. For instance, e-sanchit has been enabling paperless export-import trade processes, and faceless assessment in customs has been rolled out. Similarly, e-way bills and FASTag are also common on highways to improve the efficiency of the Logistics sector.

KEY POINTS OF THE POLICY

1. The rail, road, customs, aviation, international trade, and commerce ministries are among the seven departments whose 30 distinct systems will be digitally integrated as part of the IDS. 

2. The shorter cargo movement will be developed.

3. ULIP will facilatate easy cargo transfer.

4. The Ease of Logistics(ELOG) will help streamline the regulations and make the logistics industry easier.

5. The  System Improvement Group(SIG) will periodically assess all logistics related projects and remove barriers if any.

6. The policy will give young people opportunity to work and develop their talent in the logistics field.

The government has been doing systemic infrastructure  development through schemes such as Sagarmala, Bharatmala, and Dedicated Freight Corridor. The total capacity of Indian ports has risen significantly and the average turnout time of container vessels has come down to 20 hours from 44 hours earlier.  Other key measures include new eco-friendly waterways, 40 air cargo terminals facilitating exports, 30 cold storage facilities, 35 multi-modal logistics facilities being developed, and 60 airports with the Krishi Udan facility. The goods and service tax(GST) has reduced paperwork for the movement of goods across states. Drone transportation logistic mode will further help connect landlocked regions in far-flung areas. 

Efficiency in logistics can also increase a country's exports, boost domestic manufacturing, and make India a more attractive destination for global investors. The policy has been brought in tandem with the Prime Minister's ambitious GatiShakti national master plan that was launched to build robust infrastructure, fill the missing gaps in logistics, and draw more investments into the country.

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

Besides improving ease of doing business, and ease of living, the policy, along with other pillars of PM Gati-Shakti has the potential to usher in an unprecedented era of ‘ease of moving in the country, ensuring the speedier and seamless movement of cargo and people across modes of transport—water, air, roads, railways.

Reduced logistics costs and increased logistic efficiencies will energize the economy across sectors in multiple ways and take us many steps closer to emerging as a global manufacturing powerhouse.

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CORPORATE INDIA WELCOMES THE POLICY

The Indian Logistic Industry believes that this NLP will prove to be a game changer and a much needed shot in the arm in the post covid scenario. The Policy will bring in the global standardsin the logistic sector with its focus on digitization and technology integration. The ULIP not only promises to bring all the stakehoders on one plateform but will also harness the power of data analytics to facilate the seamless movement of cargo within the country. The industry also looks forwar to a push towards opening up cross border logistics.  It will ensure that products made in the countryare easily available globally and will be a massive boost for the nation's 'Make-in-India' Policy.