National Logistics Policy (NLP)
The National Logistics Policy (NLP) aims to build a tech-led logistics ecosystem in India and create data-driven tools that help create a better logistics environment.
Ranjan Sinha, CEO-Logistics, Supply Chain & Port Operations

The logistics sector in the country is largely unorganized and fragmented, resulting in high logistics cost at 14-15% of the GDP, compared to 7-8% in developed nations. There is also a high degree of wastage in the supply chain. For instance, 16% of India’s agricultural production is estimated to be wasted at different stages of the supply chain.

To address these challenges, the government introduced the National Logistics Policy (NLP) in September last year.

Through the initiatives of the National Logistics Policy, the government intends to raise India’s global ranking in the Logistics Performance Index to 25, from 44 in 2018, and bring down logistics cost to 8% of GDP by 2030.

India’s logistics sector is poised to grow at a CAGR of 5% from 2022-25, generating market revenue of over USD 500 billion by 2025. This is the time when India is aiming to become a USD 5 trillion economy. But to achieve this ambitious target, it is important that the country’s trade and exports improve significantly.

National Logistics Policy (NLP)Picture courtesy: barrett-ward-unsplash

The government has taken various initiatives to boost trade and announced several policies to improve infrastructure and reduce logistics cost to make Indian products globally competitive. While all the announcements are encouraging, there is still a lack of clarity on when and how the policy will be implemented and how the stakeholders will benefit from it.

As per a study, freight movement through rail is only 18 per cent whereas road still occupies 71 per cent of the total freight transported, which means that logistics costs are being paid at 50% extra. Apart from increased freight, the logistics sector also faces challenges of inadequate infrastructure and inefficient modes of transport.

Thus, there is a need to have a proper mix of railway and road freight movement. We need to develop more railway freight corridors, which could give more than 50 per cent relief in terms of costing. So, the right mix has to be 20-25 per cent through road transport, 50 per cent from railways, and around 20-25 per cent through waterways. The government is giving a lot of importance to coastal shipping and waterways. Besides, it is also eco-friendly. We have to switch on to the green mode of transportation because of the global requirements; hence, we need to focus on logistics model mix.

The policy will be supported by the PM’s Gatishakti National Master Plan to develop the requisite infrastructure and digital systems for the sector's growth, resulting in faster and more efficient movement of goods and reduced delays and inefficiencies.

NLP has proposed a single window portal to co-ordinate the services provided for warehousing, shipping, transportation,and other government agencies to speed up the approvals and process.

The benefits of Artificial Intelligence, cloud automation, blockchain, big data and other specialised software will also be availed through NLP portal. An integrated Unified Logistics Interface Platform of NLP will augment the collaboration between supply chain companies customs process automation, maximum usage of multimodal transportation which will help to bring transparency and monitoring of key logistics metrics.

This will also help save money and time and increase productivity. Improved speech recognition software will enable workers to interact directly with the warehouse management system.

Future of India's Logistics
Buoyed by the National Logistics Policy, the outlook for the logistics sector appears positive. Growth in logistics infrastructure is expected to create more job opportunities and further support the economic growth of the country. With GDP growth, logistics will grow with a multiplier effect and play a key role in the manufacturing growth expected under the PLI (Production Linked Incentive) scheme. The supply chain and logistics sector, in the coming year, will become more adaptable and resilient to external economic factors.

As per the trend forecasted by the industry leaders there will be significant growth in logistics sector in India for the following reasons:
  • Greater use of new-age technologies such as AI, ML, and automation, to optimize and automate core logistics processes.
  • Focus on sustainable operations by reducing the miles travelled per package, eliminating empty miles, optimizing delivery routes for better resource utilization, and lowering shipping costs and trip volumes.
  • More investment in electric vehicles followed by automated parcel devices which will act as alternate delivery locations for congested areas and route planning solutions.
  • Given the growth in e-commerce and proliferation of retail channels, last-mile delivery will drive growth of the logistics industry. The focus will be on making last-mile delivery more intelligent, responsible, and less reliant on human labour.
The vision of NLP is to provide a tech-enabled integrated, cost-effective, resilient, sustainable, and trusted logistics ecosystem in the country. The main target is to reduce the cost of logistics in comparison with global benchmarks and improving India’s Logistics Performance Index ranking among the top 25 countries by 2030 by creating an efficient logistics system.
Outlook for Road Logistics Sector Remains Stable: ICRA
Favourable demand sentiments continue to drive growth momentum for the road logistics sector. Following a healthy growth in FY2022, the accelerated pace of business activities is expected to continue to support the Indian road logistics sector’s growth

Read more ...

2023 to be the Year of Democratisation of Warehousing in India
As we look forward to 2023, the warehousing sector is poised to follow a steep growth curve, attracting significant investments from across the globe, and democratising the sector by increasing the involvement of small developers, landowners, and expansion

Read more ...

Sheroes of the Logistics Industry
Navigating the Road to Gender Diversity and Inclusion. The logistics industry is experiencing a change towards increased representation of women, as technology and societal changes open up new opportunities for them. Advances in technology have made

Read more ...

Shantha Martin, CEO - Global Freight Forwarding NTC Logistics India (P) Limited
The logistics and supply chain industry, which is embracing gender diversity, offers diverse professional and technological opportunities for women, with government initiatives aimed at providing equal opportunities and empowering women in

Read more ...

Chaitaly Mehta, Director - EKF GLOBAL Logistics  Pvt Ltd
The logistics industry is evolving with new technologies, market trends, and customer demands, and is becoming more inclusive and welcoming to diverse perspectives and skill sets, particularly in the participation and representation of women. According to

Read more ...

Kruti Jobanputra, Director - JW Ventures
The Indian government has taken significant steps to improve the working conditions for women in the logistics industry, with a focus on sanitation and safety. We hope that this effort will also change the discriminatory mindset at the grassroot level

Read more ...

Mahima Agarwal, President HR - CJ Darcl Logistics
At CJ Darcl, we have implemented various initiatives to promote a safe and inclusive environment for women in the logistics industry, including Code of Conduct training and POSH awareness program. We are also committed to expanding job opportunities for

Read more ...

Shweta Singh, Regional Head - Freight Wings
I firmly believe that our mindset plays a crucial role in achieving success. The idea that "believe in yourself" holds true, as gender-based equation never becomes a roadblock for a go-getter. As I traveled and worked in various countries in the APAC

Read more ...

Sanjna Vardhan, GM, International Business - Procam Group
The logistics industry is becoming more inclusive, with automation, e-commerce and technological advancements breaking barriers and creating opportunities for women, while organizations are working towards generating awareness and empowering women

Read more ...

Ruchita Apte, Head of Finance - KSH Logistics
Increased police patrolling in warehousing and industrial areas, and an increased presence of female staff in police stations can help create a more secure and welcoming environment for women in the industry. The logistics and supply chain industry has

Read more ...

Zaiba Sarang, co-Founder - iThink Logistics
At iThink Logistics, we are committed to making the logistics industry more inclusive for women. We understand that female employees may face unique challenges in the workplace, and so we have implemented policies like menstrual leave policy and full-body

Read more ...

Trends that will Reshape: Logistics Industry
The logistics industry is expanding due to the tech-savvy customers and their demand for faster deliveries. Businesses will now have to focus on growing their operations and ensuring cost-effective delivery services, enhance their supply chain management

Read more ...

Industrial and Warehousing Demand in 2022 up by 8%: Colliers
The year 2022 saw 24.5 million sqft of industrial and warehousing demand, up by 8% on a YoY basis, across the top 5 cities of India. Average quarterly leasing during 2022 remained strong at 6.1 mn sqft from 5.7 mn sqft in 2021. Third-party logistics players

Read more ...

National Logistics Policy - A Guide and Driving Force for India’s New Phase of Growth
In a visionary move, Prime Minister Narendra Modi has launched the National Logistics Policy to improve the competitiveness of Indian goods, enhance economic growth and development of infrastructure, and increase

Read more ...

Favourable demand sentiments support growth momentum for road logistics sector; outlook remains stable: ICRA
The domestic road logistics sector is expected to continue its growth momentum in FY2023 supported by the accelerated pace of business activities, following a healthy growth in FY2022. Ratings agency, ICRA maintains

Read more ...

Strong demand drives industrial and warehousing leasing by 9% YoY: Colliers
During Jan-Sep 2022, Industrial & Warehousing demand witnessed a 9% rise on a YoY basis with a total gross absorption of 17.5 mn sqft across the top 5 cities in India. Demand remained resilient during the third

Read more ...

World premiere of Goldhofer FT Series
With the presentation of Goldhofer’s latest world first in the form of the »FT-SERIES« at bauma Munich 2022, we have definitely hit the bull’s eye and introduced a vehicle that will change the transportation market for years

Read more ...

Faymonville Group showcases three product brands: MAX Trailer, Faymonville, and Cometto at bauma Munich
The new BladeMAX1000 from Cometto made its world premiere at bauma Munich. With a lifting capacity of 1000 mT, this blade lifter is by far the strongest of its kind on the market. Such a special vehicle is used to safely transport the latest

Read more ...

Innovative, economical, and practical transport solutions from TII
Transport and manoeuvring solutions from TII offer unlimited application possibilities. At bauma 2022, TII brands, TII SCHEUERLE and TII KAMAG expanded their range of transport solutions and value-added services for the construction and energy

Read more ...