National Logistics Policy

In this bill, the benefit of the common man as well as the industry people are taken into consideration to boost the economy of the country. The government has also emphasized on bettering the international market in terms of trade and business that are acquainted with the logistics services of India.

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National Logistics Policy

The national logistics policy was released by PM Modi and the commerce and industry minister Piyush Goyal on September 17, 2022. Though released in the year 2022, it was formed back in 2020 by the Indian government. However, due to the then-pandemic hit circumstances, it was very difficult to impose the bill on the logistics department because the entire logistics industry was affected by the pandemic.

Also Read: Necessity of Regulations for last mile logistics in e-commerce

Now that everything has become a bit normal and the logistics industry has bounced back, the Prime Minister and the union minister have made way for the much-awaited national logistics bill of India. In this bill, the benefit of the common man as well as the industry people are taken into consideration to boost the economy of the country. The government has also emphasized on bettering the international market in terms of trade and business that are acquainted with the logistics services of India.

Aim of the national logistics policy

Basically, the national logistics policy is formed to put in a comprehensive effort that will address the issue of the high-cost logistics ecosystem that not only affect the trade and business inside the country but it is also lowering the customer base outside the country. The policy will focus on the re-engineering process, multi-modal transport, and the digitization of the logistics business. Not only that, the Indian government has emphasized a lot on bringing down the logistics cost in the country.

It is being said that the current logistics cost of the country is expected to be around 13-14% of the GDP of the nation. The ministry officials are hopeful that if the sector is improved through the new logistics policy act then it can facilitate about a 10% decrease in the indirect logistics cost that will eventually increase the export market by 5-8 percent. It is expected to boost the economy of India in the coming years which in turn will also benefit the trade and businesses associated with the logistics industry.

Logistics is a bit of a complicated industry…

No matter how good the policies formed by the government are, they will still not incur better results if proper management is not carried out by the people associated with the logistics industry. It is so because this industry is a bit complex as compared to the other industries of trade and business.

Reportedly, it involves about 20+ govt agencies, 37 export promotion councils, 40 partner government agencies, 10000+ commodities, 500 certifications, and about $160 billion size of the market. Not only that, but it also involves about 200 shipping agencies, 129 Inland Container Depots, 36 logistics services, 168 Container Freight Stations, and about 50 IT ecosystems that include insurance agencies and banks as well. So, managing such a big and complex industry is surely a challenge to the government and the ones associated with the logistics department.

The 4 significant steps under the National Logistics Policy

  • IDS or Integration of Digital System– Under this policy, digital integration will be carried out in 7 different departments that include railways, commerce ministry, aviation, road transport, foreign trade, etc.
  • ELOG or Ease of Logistics– the ease of the logistics industry will be maintained through this policy by bettering the accessibility and transparency in the industry works.
  • ULIP or Unified Logistics Interface Platform- In this policy, cargo movement is involved. It will look after smoother and shortest movement of the cargo and will also enable confidential information exchange which will be navigated by the NICDC (National Industrial Corridor Development Corporation) Logistics Data Bank Project. This shall benefit the large-scale traders inevitably.
  • SIG or System Improvement Group– This group will monitor the projects and look after the logistics-related activities carefully.

Some suggestions to improve the implementation of the policy…

It is good for the government to take up the initiative to better the logistics department of the country but implementing it in every sector will be a tough job because of such a complex structure of the industry. However, with some well-scripted plans, it can be executed effectively to a greater extent. Some of the significant steps that the government can take include

  • Keeping a check on the misuse or exploitation of the policy rules by industry experts so as to formulate the trade as per their benefit is one thing that will bring in better opportunities for the ones who are inclined towards getting profit from it.
  • Allowing better opportunities for small-time traders and businesses to get permission for their logistics operation may enhance the growth of the business to a maximized extent. The process of approval and paperwork takes a lot of time and the industry biggies seem to be dominant in such sectors that influence the competition in the market and affect small-time traders.
  • Another important aspect of improving better logistic growth is keeping real-time checks on each and every aspect of overseas logistics. Right from exporting raw materials to using air or waterways for transportation of manufactured goods, the ease of the process and the execution of it must be mandated by a unit of the government to keep a check on any illegal activities by the traders. Also, the taxes and fines on extra shipments can be lowered so that the traders do not have to face harassment for managing their business through air or water transportation systems.
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National Logistics Policy
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In this bill, the benefit of the common man as well as the industry people are taken into consideration to boost the economy of the country. The government has also emphasized on bettering the international market in terms of trade and business that are acquainted with the logistics services of India.
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THE POLICY TIMES
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