We must bring logistics cost from 13% to single digit as soon as possible: Narendra Modi

We must bring logistics cost from 13% to single digit as soon as possible: Narendra Modi

The policy aspires to reduce cost of logistics in India to be comparable to global benchmarks by 2030

  • By IPP Bureau | September 19, 2022

We have to bring the logistics cost from 13 percent to a single digit number as soon as possible, Prime Minister Narendra Modi said while launching the National Logistics Policy in New Delhi.

Speaking on the occasion, the Prime Minister called the launch of the National Logistics Policy a significant step in fulfilling the ‘Pran’ of India being a developed country.

“To ensure quick last mile delivery, end transport-related challenges, save time and money of the manufacturers, prevent wastage of the agro-products, concerted efforts were made and one of the manifestations of those efforts is today’s National Logistics Policy,” commented the Prime Minister.

Modi said, “The echo of Make in India and India becoming self-reliant is everywhere. India is setting big export targets and is also fulfilling them. The notion that India is emerging as a manufacturing hub, is stabilizing in the mind of the world. If we study the PLI scheme we will find that the world has accepted it.”

He also said that India is emerging as a world manufacturing hub. Stressing that ‘Policy Plus Performance’ equalled progress, the Prime Minister expressed confidence that the Logistics Policy would act as a driving and guiding force.

Modi said that drone technology would emerge as an important aspect of the transport and logistics sector, especially for remote areas.

The Prime Minister reiterated that schemes like Sagarmala, Bharatmala, expedited the work of Dedicated Freight Corridors to improve logistics connectivity for systematic infrastructure development.

Modi pointed out that the total capacity of Indian ports has increased significantly and the average turnaround time of container vessels has come down from 44 hours to 26 hours. To promote exports, 40 air cargo terminals have been constructed. 30 airports have been provided cold-storage facilities. 35 multimodal hubs are coming up in the country.

“Through waterways, we can do eco-friendly and cost-effective transportation, for this many new waterways are also being built in the country,” added the Prime Minister.

The Prime Minister said that Unified Logistics Interface Platform (ULIP) 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. Similarly, under the policy a new digital platform Ease of logistics Services - E-Logs has also been started.

“Through this portal, industry associations can directly take up any such matters which are causing problems in their operations and performance with the government agencies. A complete system has also been put in place for the speedy resolution of such cases,” added Modi. 

Delivering the welcome address at the release of the National Logistics Policy, Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Piyush Goyal said, "The National Logistics policy would end to silos and bring all departments and states together, in-line with the holistic vision of the Prime Minister."

Referring to logistics as the lifeline of the economy, the Commerce Minister said that the National Logistics Policy would give India’s logistics sector a new direction and take it to greater heights.

The Minister expressed confidence that the implementation of the National Logistics Policy would bring down logistics costs, give a fillip to international trade, help in making India ‘atmanirbhar’ or self-reliant, usher in prosperity in the nation and present new opportunities to our startups.

Outlining several crucial initiatives that India had taken in the field of transport infrastructure such as UDAAN, Bharatmaala, Sagarmala, National Infrastructure Pipeline etc. Goyal said that a new chapter had been added to the book of growth when the PM GatiShakti National Master Plan was launched last year. “National Logistics Policy and GatiShakti will work as double engines for logistics,” added Goyal.

Terming infrastructure development as a sure road to economic development, the Minister said, "Technology and innovation formed an important part of this mission. It is in this context that the Unified Logistics Interface Platform (ULIP) has been prepared as an integrated portal in which information about the location of goods can be obtained on a real-time basis with considerable ease."

Logistics efficiency is a function of infrastructure, services (digital systems/processes/regulatory framework) and human resource. PM GatiShakti National Master Plan (NMP) for multimodal connectivity infrastructure to various economic zones, has been launched. It is a transformative approach for improving logistics efficiency and reducing logistics cost, with focus on integrating existing and proposed infrastructure development initiatives of different agencies, to ensure first and last mile connectivity, for seamless movement of people and goods.

While development of integrated infrastructure and network planning is envisaged to be addressed through the PM GatiShakti National Master Plan, for efficiency in services (processes, digital systems, regulatory framework) and human resource, the National Logistics Policy is the logical next step. This will provide a comprehensive agenda for development of the entire logistics ecosystem.

The vision of the policy is to develop a technologically enabled, integrated, cost-efficient, resilient, sustainable and trusted logistics ecosystem in the country for accelerated and inclusive growth.

The policy aspires to reduce cost of logistics in India to be comparable to global benchmarks by 2030, endeavour to be among top 25 countries by 2030 in the Logistics Performance Index ranking, and create data driven decision support mechanism for an efficient logistics ecosystem.

The Policy will be implemented through a Comprehensive Logistics Action Plan (CLAP). The interventions proposed under the CLAP are divided into eight key action areas: Integrated Digital Logistics Systems; Standardisation of physical assets and benchmarking service quality standards; Logistics Human Resources Development and Capacity Building; State Engagement; EXIM (Export-Import) Logistics; Service Improvement framework; Sectoral Plan for Efficient Logistics; and Facilitation of Development of Logistics Parks.

Union Minister of Commerce & Industry, Piyush Goyal; Union Minister of Road, Transport & Highways, Nitin Gadkari; Union Minister of Civil Aviation, Jyodiraditya Scindia; Union Minister of Railways, Ashwini Vaishnav; Union Minister of Port, Shipping and Waterways, Sarbanada Sonowal; Union Minister of Education, Dharmendra Pradhan; and Union Minister of State for Commerce and Industry, Som Prakash were those present on the occasion.

Upcoming E-conference

Other Related stories