PM Modi unveils National Logistics Policy

Tags: National Economy/Finance National News

Prime Minister Narendra Modi launched the National Logistics Policy (NLP) at Vigyan Bhawan, New Delhi on 17 September.

IMPORTANT FACTS -

• The central government has been working on the National Logistics Policy for three years.

• The commerce ministry released a draft logistics policy for consultation in 2019, but it was delayed due to the COVID-19 pandemic.

• Finance Minister Nirmala Sitharaman announced the National Logistics Policy in the budget  2022-23.

• PM said faceless assessment has started in customs and e-way bills and FASTag are bringing efficiency in the logistics sector.

• He said the Sagarmala project to link ports and dedicated freight corridors has started improving logistics connectivity and systematic infrastructure development work.

• The Prime Minister said that India is now the fifth largest economy in the world and is emerging as a manufacturing hub.

Aim of the National Logistics Policy :

• It aims to promote smooth movement of goods and enhance the competitiveness of the industry.

• Through this policy, the focus will be on areas like process re-engineering, digitization and multi-modal transport.

Highlight of the Policy :

• This policy seeks to support rapid growth in the aftermath of the corona pandemic.

• It will streamline regulations and remove supply-side bottlenecks, besides providing a roadmap to reduce fuel costs and logistics costs.

• The draft policy seeks to create a reference point for all logistics and trade facilities and to reduce costs for the logistics sector by 10 percent over five years.

• The logistics sector is estimated to account for 13-14 per cent of the GDP.

• This policy is an attempt to improve the competitiveness of Indian goods, increase economic growth and employment opportunities.

India's logistics sector :

• India's logistics sector has more than 20 government agencies, 40 participating government agencies (PGAs), 37 export promotion councils, 500 certifications, over 10,000 items and a $160 billion market.

• As per the World Bank Logistics Index of 2018, India is ranked 44th in logistics costs.