Sansad TV: National Logistics Policy | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Introduction

• The National Logistics Policy, launched by Prime Minister Narendra Modi, seeks to improve the logistics sector in India by promoting the smooth movement of goods and increasing industry competitiveness.
• The policy is anticipated to decrease the high logistics cost in India, which is currently greater than other developed nations, and transform India into a global logistics hub, resulting in increased economic activity. 
• The logistics policy's detailed action plan includes specific targets and objectives for the sector, and it is expected to produce significant changes and long-term advantages for the logistics industry in India.

Background

• The high logistics cost in India as compared to other developed nations has led to the need for a national logistics policy. Reducing logistics cost is crucial for improving the competitiveness of Indian goods in domestic and international markets.
• A reduction in logistics cost will enhance efficiency in various sectors of the economy, encouraging value addition and enterprise. Since 2014, the government has been focused on improving both Ease of Doing Business and Ease of Living.
• The National Logistics Policy aims to reduce the high cost and inefficiency by laying down an interdisciplinary, cross-sectoral, and multi-jurisdictional framework for the development of the logistics ecosystem. It is an effort to improve the competitiveness of Indian goods, enhance economic growth, and increase employment opportunities.
• The policy aligns with the Prime Minister's vision of developing world-class modern infrastructure through the integration of all stakeholders in holistic planning and implementation to achieve efficiency and synergy in project execution. The PM GatiShakti, launched by the Prime Minister last year, was a pioneering step in this direction, and the National Logistics Policy will further boost and complement it.

The Policy and its analysis

• The National Logistics Policy, launched by Prime Minister Narendra Modi, aims to reduce the high logistics cost in India and make the country a global logistics hub.
• It is a comprehensive effort to address the issues of high cost and inefficiency in the logistics sector by streamlining processes, regulatory framework, skill development, and adoption of suitable technologies.
• The policy is part of the government's vision to develop world-class modern infrastructure through the integration of all stakeholders. It sets targets, including reducing logistics costs, improving Logistics Performance Index ranking, and creating a data-driven decision support mechanism.
• The policy is expected to reduce wastages in supply chains, enable greater integration of global value chains, and increase the country's share in global trade, facilitating accelerated economic growth. The Empowered Group of Secretaries will monitor the implementation of the policy and integrate efforts across stakeholders. 
• The policy lays down a clear direction for transforming India's logistics sector, improving logistics efficiency, reducing logistics costs, and improving global performance.