Union Cabinet, chaired by PM Narendra Modi, approved National Logistics Policy to make logistics services efficient. Aim of the Policy is to decrease logistics cost, develop MMLPs, integrate technology, and boost Logistics Performance Index, to take India among 25 developed countries by 2030.
CT Bureau
Introducing the National Logistics Policy in New Delhi on September 17, PM Narendra Modi said the Policy was a step towards “making of a developed India”. The policy is a shot in the arm for logistics and every sector, he added. Modi said, “In Amrit Kaal, the country has taken a giant stride towards making a developed India. The echo of ‘Make in India’ and ‘India becoming self-reliant’ is everywhere—India is emerging as a manufacturing hub. In this regard, the Policy has brought new energy for all sectors.” It aims at enhancing competitiveness and seamless movement of goods. The Policy, approved by the Union Cabinet, complements the PM Gati Shakti National Master Plan, aimed at integrated infrastructure development. The Policy is envisaged to bring efficiency in logistics services, and human resources through streamlining processes, regulatory framework, skill development, mainstreaming logistics in higher education and, adoption of suitable technologies. The vision is to develop a technologically enabled, integrated, cost-efficient, resilient, sustainable, and trusted logistics ecosystem for inclusive growth. The Policy has fixed targets that include an action plan to achieve them.
The Logistics Policy has been developed through a consultative process wherein several rounds of consultations were held with various Union ministries/departments, industry stakeholders and academia, and knowledge was taken of the global best practices.
The Policy also focused on setting up Multimodal Logistics Parks (MMLPs), developing infrastructure, and enhancing multimodal connectivity. “The government, both at the Centre and the states, would prepare a master plan for logistics covering projects planned by different Union ministries to ensure multimodality, optimal modal mix and, addressing first and last mile connectivity. The Policy makes way for a framework to set up MMLPs to be adopted by states and Union ministries. A framework will be put in place for accelerated development of warehousing, which will address aspects such as standards, benchmarking and rating, and adoption of technology enabled solutions,” said the PM.
Modi advised India should work towards reducing logistics cost as a percentage of GDP. It needs to be reduced to single digit at the earliest from 13-14 per cent. “The Policy is the first step in reducing logistics cost in India. Performance of all ministries involved will be key in reducing logistics cost in India. The Policy will address issues of high cost and inefficiency by laying down an overarching interdisciplinary, cross-sectoral, and multi-jurisdictional framework for the development of the logistics ecosystem,” the PM added. The Policy aims at expediting last-mile delivery (LMD) and addressing challenges facing the transport sector. Modi said the Policy along with PM Gati Shakti Master plan will address these loopholes. He called the NLP a solution for many issues and said it would lead to improvement in all our systems.”
An action plan will be laid down for ground implementation of various initiatives. In fact, to ensure that the Policy’s benefits have maximum possible outreach, important initiatives under the policy, including ULIP, Ease of Logistics Services platform, e-handbook on warehousing, training courses on PM Gati Shakti Masterplan, and logistics on i-Got platform, have also been launched, indicating the government’s readiness for immediate implementation of the Logistics Policy.
These technology platforms will unite Union ministries such as road transport, railways, customs, aviation, foreign trade, and commerce on one platform. All the departments will have their own digital data, which will be integrated to help facilitate smooth flow of cargo movement. The policy will facilitate unified policy and an environment for end-to-end logistics, and an overarching institutional framework to enhance the competitiveness of the logistics sector.
The Centre, he said, is using technology to strengthen logistics sector. “Faceless assessment has commenced in Customs, e-way bills and FASTag, thereby bringing efficiency in the logistics sector.” Calling the Logistics Policy a solution to many issues, the PM said it would lead to improvement of “all our systems. There has been an effort to find solutions for fast LMD and resolution of transportation-related challenges for saving money and time of industries and manufacturers. I believe all our systems will improve and there will be a coordination between various units of the government working in these fields with a holistic approach. All these will result in delivery of speed that we want to achieve,” he added.
Amrit Lal Meena, Special Secretary, Logistics, Dept of Commerce, Union Commerce Ministry
The National Logistics Policy has been formulated after consultations with industry stakeholders and concerned ministries. We have pilot tested with the logistics service players and, it is a happy moment that the Policy has been introduced at the right moment. A portal has been created to facilitate resolution of issues of logistics associations. It will serve ease of logistics services and facilitate resolution of issues of logistic industry associations. We will soon be registering the associations and they will get to raise their issues/problems, which are slowing down their efficiency and performances.
Deepak Sood, Secretary General, ASSOCHAM
The National Logistics Policy is a major structural transformative initiative, which will substantially reduce transaction costs across the entire supply chain. The Policy will facilitate the country being embedded across international value chains, as we move ahead on the path towards Bharat@100.
Chandrajit Banerjee, Director General, CII
Besides improving Ease of Doing Business and ease of living, the Policy along with other pillars of Gati Shakti initiative has the potential to usher in an era of ‘ease of moving’ in India—speedier and seamless movement of cargo and people by various modes of transport. The reduced logistics cost and increased efficiencies will energize the economy to take us closer to emerging as a global manufacturing powerhouse.
Vipin Vohra, Chairman, Continental Carriers
The NLP along with the Gati Shakti plan would undoubtedly help in strengthening the logistics ecosystem and achieving major milestones for the Make in India movement. Last mile delivery, an effective supply chain, reduced logistics costs, and global benchmarking would be possible with the help of NLP. The policy will significantly increase import and exports, which will boost the need for modern warehouses and turn India into a hub for global warehousing.
CK Govil, Vice President, ACAAI
If the Policy is implemented in true spirit, it shall surely be a game changer and result in exponential growth during Amrit Kaal, as envisaged by PM Narendra Modi. Hope the new Logistics Policy comes with reduction in costs, time and carbon emissions generating more jobs and turns out to be the Policy mechanism for unifying India’s fragmented logistics landscape with technological interface.
Sanjiv Mehta, President, FICCI
The Policy has the potential to reduce logistics cost and improve the industry’s competitiveness in the backdrop of the Gati Shakti Masterplan. The resultant environment would not only strengthen the logistics sector through optimum inter-ministry coordination but also deploy resources. We believe combining the strengths of different modes of transport, adopting technology, and digitization will give a fillip to the sector. The Policy and Gati Shakti would help to reducing logistics cost and augment competitiveness.
Sushant Nigam, Executive Director, ACAAI
Through the new Policy, focus has been realigned on the infrastructural and skill development, latest technology, interoperability, sectoral plans, benchmarking of efficiency parameters, hub, and spoke facilities, better coordination amongst regulatory and industry agencies to enhance efficiency, reduction of logistics cost, and bolstering the economy to enable the country to get onto the bandwagon of powerful countries in the world.
M Afzal Malbarwala, President, ACAAI
Now that the Logistics Policy has been introduced, we must perform and show the progress. PM Narendra Modi praised the work done by the logistics sector during COVID, which is an energy booster. As mentioned by the PM, the sector needs to ensure faster deliveries in the coming times. It was an honour and inspiration to hear him. With this Policy, we are on par with various countries.
Cyrus Katgara, Partner, Jeena and Company
The Policy will accelerate growth of the sector in the coming years as it focuses on seamless movement of goods across the country and addresses the infrastructure, procedural loopholes in the Indian EXIM connectivity by creating efficient, reliable, and streamlined cross border trade facilitation. The plan for cost-effective logistics is aligned with Gati Shakti Masterplan, which will be a game changer. We look forward to its unfolding in the future.
Xerrxes Master, President, AMTOI
The new Policy is nothing short of a revolution in the logistics industry. It will not only ensure a reduction of logistics cost, but also improve the performance index ranking of the country among the top 25 countries by the year 2030. It creates an efficient logistics ecosystem to ensure a resilient supply chain. This well laid out strategy will ensure the desired results within the stipulated period.
Yashpal Sharma, President, ACFI and MD, Skyways Group
The Policy includes an interface to link multiple data sources and develop cross sectoral user cases for logistics stakeholders. Standardisation of physical assets and benchmarking service quality standards minimize handling risks and improve ease of doing business. EXIM Logistics addresses procedural gaps in India’s EXIM connectivity. It creates reliable logistics network with streamlined cross-border trade facilitation, improved trade competitiveness, integration of India with regional and global value chains, and facilitation of development of MMLPs.
Manu Raj Bhalla, President, Warehousing Association of India (WAI)
The National Logistics policy is believed to complement the PM’s ambitious Gati Shakti National master plan to facilitate investment in world-class warehousing and logistics infrastructure which will dovetail into the Make in India objective alongside the Aatmanirbhar Bharat initiative. The vision is to develop a technologically enabled, integrated, cost-efficient, resilient, sustainable, and trusted logistics ecosystem for accelerated and inclusive growth.
Shankar Shinde, Chairman, FFFAI
The NLP has an aim to bring down the present logistics cost to single digit to make India one of the lucrative manufacturing hubs in the world. Hence there will be new opportunities for the logistics industry and support trade with seamless movement of cargo across all modes of transport thereby leveraging through PM Gati Shakti initiatives with introduction of ULIP digital E-Logs to be at speed of Cheetahs. We appreciate Hon’ble PM in taking a holistic approach with efforts culminating eight years of hard work efforts to yield results. The Key objectives of these initiatives were to expedite cargo clearance, Ease of Doing Business, and improvement of the Logistics Performance Index of the country to adopt best practices to compete world standards with first and last mile connectivity. We look forward to active role participation in such new initiatives.
Ajay Singhal, CMD, OM Logistics Ltd.
A common concern for logistics speed barrier is RTO checks. Due to few wrong truck drivers, the entire industry has to bear the brunt of vehicle checking. RTO is forced to stop more than 1000 trucks behind an unlawful truck. This leads to late delivery of goods, also increased the logistics cost. We all are expecting to come down the logistics cost. Strongly, our government is promoting digitization, has already launched LEADS, E-log and ULIP. I would request to digitize RTO process too for expediting last mile delivery.
Satish Lakkiraju, Global Head Air Freight and Pharma – WIZ
The NLP has put India in a different league now and ensured the world takes the country seriously given the fact that we are clearly the pharma hub and on way to becoming the manufacturing Hub for many verticals. Those countries, which addressed logistics challenges, have ensured that the end customers are benefited. The policy is step in the right direction along with PM Gati Shakti Masterplan and Krishi Udaan 2.0.
Shashi Kiran Shetty, Founder and Chairman, Allcargo Group
The NLP is a visionary move by the government, which will bring transparency through digital integration in addition to boosting speed and efficiency. It will enable fast-paced logistics infrastructure development, coordinate among multiple stakeholders, simplify processes, and boost LMD. The policy will also usher in inclusive progress in India with opportunities for job generation and logistics services delivery. Focusing to reduce logistics cost by 25 per cent, the NLP will boost India’s export competitiveness in the market.
Huned Gandhi, MD, Indian Subcontinent Air & Sea Logistics, Dachser
The government has taken a comprehensive approach to transform the logistics industry and so introduced the NLP. With a clear target for standardisation, infrastructure development and the ULIP, we are preparing ourselves for the future. It is `adequately addressed. The next decade will be interesting period as we build logistics infrastructure to facilitate the strong growth of the Indian economy.
Swarup Bose, Founder & CEO, Celcius Logistics
With introduction of ULIP, we will be able to create a tech-enabled national platform that can fast track digitization, drive transparency and operational efficiency in the sector. Gati Shakti, focusing on enhancing multimodal connectivity, serves as a booster for creating seamless supply chain network. Under the Policy, reforms such as e-log, standardisation of warehousing, paperless, digital documentation, and Gati Shakti Vishwa Vidyalay for training and upskilling of drivers and handlers will set pace to build a cost-effective logistic sector.
Abhijit Verma, Managing Director, AA Holdings
The government has streamlined the process by the introduction of NLP and bringing Logistics stakeholders together to ride technology platforms like ULIP and e-Log, to be globally competitive. But at the macro level we need to develop capabilities to capitalize the opportunities available to the industry by expediting ourselves. Additionally, the land policies across states are different with challenges that need to be addressed.
Jagannarayan Padmanabhan, Director & Practice Leader, Transport and Logistics, CRISIL
This is an effort to increase efficiencies of all aspects of the logistics value chain. Over the past five fiscal years, the government has invested nearly 15 lakh crore to enhance infrastructure such as roads, rail, ports, and airports across India. Its right implementation will help structurally reduce logistics costs and make a material difference to the growth of India’s manufacturing and services sectors.
Piyush Kumar Singh, Logistics Trade Specialist
The NLP will prove to be a driving force in the progress of the sector and will help India set standards for going paperless across the world. It will further help pivot SMEs and MSMEs in the direction of accelerated growth—as costs get rationalized and government agencies, partners, business councils, and other key stakeholders in the logistics industry have called the NLP a huge leap forward for the country’s logistics sector.
Deepak Tiwari, COO, KSH Logistics
The Policy is the much-needed mantra for the logistics industry and is a guide on how to move towards improving efficiency and reducing costs on par with international standards. The e-handbook on warehousing standards will be beneficial in creating uniformity and best practices across warehouses.
Raghav Singhal, Director, Om Logistics
The gift given by Hon’ble Prime Minister in the form of logistics policy to all the countrymen on the occasion of his birthday is incomparable. Our country is the fifth largest economy in the world and the speed at which we are moving ahead requires not only speed-power but also strong will. The logistics industry has long been considered an unorganized sector and an industry with unskilled labor. This is the reason why youth did not consider logistics industry as their first choice even after having good quantity and good paying jobs, I believe this thinking should be changed now.
Vineet Sharma, CEO & Co-founder, FleetX
NLP is a game changer for India’s growth story and another milestone for a New India. The NLP will multiply the nation’s growth at several levels by bringing all logistics stakeholders/departments under one umbrella for faster resolution of issues and reducing cumbersome documentation among others. The key will be to execute this policy as PM Narendra Modi has said—Policy + Performance = Progress. The NLP with KPIs monitoring and rapid digitization across logistics and transportation industry will help India progress towards the goal of becoming a developed nation.
Nitish Rai, CEO and Founder of FreightFox
The NLP will offer a framework for accelerating the growth of the industry. FreightFox interacted with the PM for the future of Indian logistics. The firm’s solutions used geospatial analytics, advanced data, and ML models to evolve highly efficient and scalable solutions. They earlier presented these plans to dignitaries from Amitabh Kant, former CEO, NITI Aayog, Amrit Lal Meena, Special Secretary, Logistics, Dept of Commerce, Union Commerce Ministry, NLDSL and NICDC during the nationwide logixtics hackathon. FreightFox was declared the hackathon’s winner and NITI Aayog and NLDSL felicitated it.
Sunil Nair, CEO, Snowman Logistics
The new Policy covered most expectations, and a lot of action will be seen soon. The integration of 30 systems from seven different departments is one of the most liked solutions. The e-handbook on warehousing will facilitate the standardisation and grading of warehouse infrastructure. The NLP also covers the operational aspects, differentiating the operators’ performance. Also, the Policy aims to help all stakeholders, both organized and unorganized, to address any challenges each might have on one platform. “It will go long way in reducing the logistics cost in the country,” he said.
Anil G Verma, Executive Director, Godrej & Boyce
The policy is a crucial step forward for efficient supply-side management and reducing logistics cost to global standards of about 10 per cent. The NLP will provide the much-needed fillip to export growth allowing Indian manufacturers to expand footprints globally. The Gati Shakti Vishwavidyalaya will bolster job avenues, laying emphasis on skill enhancement across the logistics value chain. The impetus given to transportation through new waterways, airports and multimodal logistics hubs will provide a roadmap to deliver products efficiently across various international markets.
Ketan Kulkarni, Chief Commercial Officer, Blue Dart
The new Policy covered most expectations, and a lot of action will be seen soon. The integration of 30 systems from seven different departments is one of the most liked solutions. The e-handbook on warehousing will facilitate the standardisation and grading of warehouse infrastructure. The NLP also covers the operational aspects, differentiating the operators’ performance. Also, the Policy aims to help all stakeholders, both organized and unorganized, to address any challenges each might have on one platform. “It will go long way in reducing the logistics cost in the country,” he said.
Anil G Verma, Executive Director, Godrej & Boyce
The policy is a crucial step forward for efficient supply-side management and reducing logistics cost to global standards of about 10 per cent. The NLP will provide the much-needed fillip to export growth allowing Indian manufacturers to expand footprints globally. The Gati Shakti Vishwavidyalaya will bolster job avenues, laying emphasis on skill enhancement across the logistics value chain. The impetus given to transportation through new waterways, airports and multimodal logistics hubs will provide a roadmap to deliver products efficiently across various international markets.
Ketan Kulkarni, Chief Commercial Officer, Blue Dart
The NLP caters to all stakeholders with an emphasis on streamlining processes for seamless coordination, job generation, and ease of business for corporates, farmers and MSMEs. The Policy will help bring down the transportation, warehousing and inventory costs which will consequently reduce the overall logistics cost down to 8 per cent of GDP in next five years. Digitization and creation of unified portals will play a vital role in bringing the sector together. While ULIP will serve as a single window e-logistics market, ELOG will address the issues of enhancing the logistics sector. The policy will generate employment and address manpower issues, with the introduction of new logistics and supply chain courses for students.
Vineet Agarwal, MD, Transport Corporation of India
Push towards seamless multimodal transportation and connectivity will be a game changer as it will shift the transportation stress from road to other modes as well. It will help us drive the ESG goals and focus on a better cost structure. The paperless supply chain initiative, strengthened cooperative federalism, ease of Logistics services portal, and standardisation of the warehousing sector will help India become one of the top 25 logistics performers in the world. The ULIP will enhance visibility of customers and enable logistics companies to adopt digitization.
Dhruv Agrawal, COO and Co-Founder, Shipsy
The NLP has been introduced to improve the effectiveness of India’s logistics industry. It aims to encourage smooth circulation of goods and increase the industry’s competitiveness. The policy emphasises multi-modal transportation, digitization, and process re-engineering. The policy becomes significant due to high excessive logistics cost making its unable for industrialists to compete in the global market. The EXIM trade procedure is now paperless thanks to e-accumulation, faceless customs assessment, issuance of e-way bills, and FASTag. There are also drone deliveries for logistics of critical and time-sensitive goods. These have improved the industry’s efficiency. The aim is to make Indian goods more competitive and generate job opportunities.
Zaiba Sarang, Co-founder, iThink Logistics
NLP aims at reducing the logistics cost from 13-14 per cent to a single digit. Drones will soon transport agricultural products from remotest regions of Himalayas or remote islands to the Metro region of India. ULIP, e-Log, Gati Shakti and other initiatives will try to hike pace of transport at cheetah speed. NLP gives the smallest of person in the ecosystem access to information that was available only to key stakeholders. Only 85% transporters own less than 10 trucks and now their empty trucks can pick up the goods, yielding them higher returns. The NLP also helps the last mile to be more efficient and faster to fill up the gap of transporter where business can benefit in terms of time and cost.
Pervinder Singh Chawla, Co-Founder at OnMove by Zast Logisolutions
For making Indian products competitive not just in India but globally, we need strong supply chains. It is core of strong manufacturing base. While policy has covered most of the focus areas, but the key challenges of implementation would be coordination between different ministries, alignment of key stakeholders, pace of infrastructure development and implementations. The policy is comprehensive, and we look forward for a strong implementation of it.
Mehul Kapadia, Chief Growth Officer, Locus
The National Logistics Policy (NLP) addresses the deep-rooted issues in the logistics ecosystem, especially the mid-mile. Driving efficiency and reduction in logistics costs have traditionally been a barrier to not just the mid but also the last mile, which could have been addressed only via digitization. We are pleased that NLP emphasizes the critical role of technology in facilitating seamless information exchange between drivers and businesses, ultimately transforming the middle and last mile from a cost center to a revenue generator. We are positive that this policy will boost the overall country’s economic growth, and we look forward to working with the government to create a cost-efficient and sustainable logistics environment.
Sudhir Unnikrishnan, SVP & Managing Director, Blume Global India
The new logistics policy opens new global avenues for technology companies like ours and we are happy with this welcoming move. In a country like India where road transport forms the backbone of logistics, an integrated infrastructure will enhance seamless connectivity across all modes of transportation. We also believe this will help in creating a more sustainable environment by providing an open, neutral platform across all trading partners. The combined aim of NLP and Gati Shakti is to bring logistics cost below 10% and we completely agree that digitisation and ULIP will enhance cargo movement with better accessibility of the available data. Undoubtedly, a connected infrastructure will bring in better visibility, cost efficiency, skill development and a better tomorrow.
Kami Viswanathan, Senior VP, FedEx Express, Middle East Indian, Subcontinent and Africa Operations
The development of an efficient logistics ecosystem is vital for India to become a US$5 trillion economy and improve trade competitiveness. As the country looks to modernize infrastructure and supply chains, it is evident that technology is the key to unifying all stakeholders and help manage complexity better. We support the government’s vision to make India an attractive and connected place to do business.
Rampraveen Swaminathan, MD and CEO, Mahindra Logistics
As India aims to become a US$5 trillion economy, connectivity and superior infrastructure will be critical. The NLP has come as booster for the sector since it aims to promote seamless movement of goods across India and could lead to a reduction in logistics cost and accelerate GDP. It will further have a positive impact on nation’s supply chain and will help to augment warehousing capacity and take products closer to the consumption points.
