India Inc. has praised the government for announcing the New Logistics Policy, especially the logistics industry (NLP).

The long-awaited regulatory framework, which answers the demands of all the significant actors in the vast but fragmented national logistics sector, was announced on September 17. The new framework strongly emphasizes reducing overall logistical costs and optimizing processes for seamless collaboration, as well as promoting job creation and worker skill development.

What is Logistics?

Resources such as people, inventories, equipment, raw materials, and raw materials are all coordinated, stored, and transferred from one place to another as a result of logistics. Logistic management encompasses the complete process of procuring, storing, and delivering resources. Finding prospective distributors and suppliers and assessing their feasibility and accessibility is required.

What is NLP 2022?

About:

• The policy puts a lot of emphasis on important topics including process re-engineering, digitization, and multi-modal transportation.
• The decision is critical since excessive logistics costs affect the competitiveness of domestic products internationally.
• India has higher logistics costs than other industrialized nations, so a national logistics policy was deemed necessary.

Goals:

• By 2030, the cost of logistics must be lowered in half from its current level of 14–18% of GDP to the level recommended by international best practices, which is 8%.
• Several European countries, including the US, South Korea, Singapore, and South Korea, have very low logistics costs-to-GDP ratios.
• It currently accounts for 16% of the GDP.
• India, which has the fifth-largest economy in the world, wants to rank in the top 10 countries in the Logistics Performance Index (LPI) by 2030. It must keep up with South Korea's speed.
• India placed 44th in the LPI in 2018.
• For enabling a productive logistics environment, develop data-driven decision support systems (DSS).
• The goal of the program is to ensure that logistical problems are kept to a minimum, exports increase greatly, and small businesses and the people who work in them significantly profit.

Background India's logistics costs are higher than those of other industrialized nations, which led to the need for a national logistics policy.

India must drastically cut its logistics costs if it wants to increase the competitiveness of its exports and domestic products. Cost-effective logistics increase productivity across all economic sectors, fostering value creation and entrepreneurship.

The administration has prioritized increasing both the ease of doing business and the ease of living since 2014. Another step in this direction is the National Logistics Policy, a comprehensive initiative to address problems of high cost and inefficiency by establishing an overarching interdisciplinary, cross-sectoral, and multijurisdictional development of the entire logistics ecosystem's framework. The policy's objectives are to provide employment opportunities, foster economic expansion, and strengthen the competitiveness of Indian goods.

The prime minister has a goal of creating a contemporary infrastructure of the finest quality by including all interested parties in comprehensive planning and implementation, which will increase project efficiency and synergy. A trailblazing move in this area was the PM GatiShakti National Master Plan for Multi-Modal Connectivity, introduced by the Prime Minister last year. The introduction of the National Logistics Policy will give PM GatiShakti additional impetus and complementarity.

Announcing the policy

When unveiling the policy, Prime Minister Narendra Modi said something significant: "From 13 to 14% logistics cost, we should all attempt to bring it to single-digit as soon as possible. If we want to compete on a worldwide scale, this is low-hanging fruit. The PM added that the National Logistics. The policy will be supported by the PM Gatishakti National Master Plan.

According to the government, the Unified Logistics Interface Platform (ULIP) will consolidate all digital services relating to the transportation industry into a single platform, relieving exporters of a variety of extremely drawn-out and onerous procedures. As part of the mega policy concept, a new digital platform dubbed Ease of Logistics Services - e-logs has also been introduced.

Industry organizations can directly address any such issues that are hindering their operations and performance with the government entities using this platform. Additionally, a thorough system has been established for the swift handling of such matters.

According to industry watchers, NLP will introduce a completely new revolutionary approach to the nation's logistics environment, increasing supply chain efficiency. Arindam Guha, Partner, Government & Public Services Leader, Deloitte India, anticipates that the new program will enable a modal shift in logistics from the existing over-dependence on roadways (over 60% share versus 25% internationally) to railroads (30% versus about 60% globally).

Summary The article tells about the background and everything about the new logistic policy. It surely add knowledge to you, For reading such articles keep an eye out for Dhannay’s blog post also follow us on social media platforms!