National Logistics Policy: The Policy To Reduce 10% Logistics Costs Nationwide
National Logistics Policy: India is going to get its new National Logistics Policy which will reduce upto 10% fuel costs across the country for all businesses.
The Indian business industry is going to get the country’s new National Logistics Policy today.
The business community anticipates that the new policy will include some of these measures, which will aid in the recovery of the Covid-affected economy.
In this policy, initiatives will be taken to address the supply side issues. In addition to this, several decisions are anticipated to be made that will lower the amount of fuel used for freight.
In India, logistics, or the transportation of freight, ranges from road plus water transportation to air travel.
PM Modi To Launch National Logistics Policy On His Birthday
On his birthday, September 17, Prime Minister Narendra Modi will unveil this new initiative to lower fuel prices and speed up the movement of freight around the nation.
India spends between 13 and 14 percent of its GDP on logistics, while nations like Germany and Japan only spend between 8 and 9 percent, according to Commerce & Industry Minister Piyush Goyal.
Let’s review the modifications India will make to its new National Logistics Policy, which will both improve and lower the cost of the nation’s logistics system.
National Logistics Policy Delayed Due To COVID
The National Logistics Policy has been under development by the Indian government for three years. The Corona pandemic caused major delays as well.
Nirmala Sitharaman, the finance minister, stated that the role of the federal government, state governments, and other institutions would be specified in the new policy during this year’s budget address.
There will also be the development of a single window e-logistics market. Additionally, initiatives will be taken to increase small and medium-sized businesses and create employment possibilities.
What Is The National Logistics Policy?
A single point of reference will be established for all logistics-related issues, under the new logistics policy.
In the next ten years, it is intended to reduce the logistics sector’s cost, which presently accounts for 13–14% of GDP, to 10%.
The majority of logistics work is currently done on highways. The focus will now be on maritime and air travel, in addition to train travel, under the new policy.
According to an official, the new policy will allow for the transportation of around 50% of the freight by railroads.
As a result, there will be less vehicle traffic, less oil imports, and less money spent on logistics. Additionally, less time will be required.
Let us inform you that India is placed 44th in terms of logistics spending according to the World Bank Logistics Index 2018.
India lags far behind nations like the US, which is ranked 14th, and China, which is placed 26th. In terms of logistical costs, Germany ranks first, meaning that its costs are the lowest.
India Operates 17 Lakh Crore Logistics Market
India has a more than 17 Lakh Crore (215 billion USD) logistics market. This market is expanding at a compound annual rate of 10.5%. Even so, only 10% to 15% of it originates through the organized market.
According to traders, by implementing a new policy in this area, a number of issues can be resolved and India can forge a new position in terms of logistics.
According to the Ministry of Commerce and Industry, this industry provides employment for more than 22 million people nationwide.