He said, “To ensure quick last mile delivery, end transport-related challenges, save time and money of the manufacturers, prevent wastage of the agro-products, concerted efforts were made and one of the manifestations of those efforts is the National Logistics Policy.” The resulting improvement in coordination will lead to the desired speed in the sector.
The national logistics policy aims to reduce the logistics cost in India for improving the competitiveness of Indian goods both in domestic and export markets. This will improve efficiency across various sectors of the economy, encouraging value addition and enterprise.
It has been the vision of the Prime Minister to develop world-class modern infrastructure through the integration of all stakeholders in holistic planning and implementation so that efficiency and synergy are achieved in the execution of the project.
Schemes like Sagarmala, Bharatmala, expedited the work of Dedicated Freight Corridors to improve logistics connectivity for systematic infrastructure development. Initiatives like paperless EXIM trade process through e-sanchit, faceless assessment for customs, provisions for e-way bills, FASTag etc. have significantly increased the efficiency of the logistics sector.
The PM GatiShakti – National Master Plan for muti-modal connectivity – launched by the Prime Minister last year, was a pioneering step in this direction. PM GatiShakti will get further boost with the launch of the National Logistics Policy.
As a part of the policy, the Unified Logistics Interface Platform ULIP will bring all the digital services related to the transportation sector into a single portal, freeing the exporters from a host of very long and cumbersome processes. Another digital platform called Ease of logistics Services -E-Logs has also been started. The PM informed that through this portal, industry associations can directly take up any such matters which are causing problems in their operations and performance with the government agencies. A complete system has also been put in place for the speedy resolution of such cases.
The Prime Minister underlined that for the products manufactured in India to dominate the world market, it is crucial to have a strong support system. “The National Logistics Policy will greatly help us modernize this support system”, he added. Strengthening of the logistics sector will not only make the life of common man easier but will also help in increasing the respect of labour and workers.
Industry Reactions:
K.K Agarwal, Chairman and MD, CJ Darcl Logistics
“The National Logistics Policy was the need of the hour for India to drive its economic growth by bringing in efficiency and lowering logistics costs. The initiatives announced by the government today would help bring logistics costs down to 8-9% of GDP from existing around 15% and make our products for domestic and international markets competitive. Going ahead, we believe movement of goods via railways and shipping is set to see strong growth as ULIP becomes one of key trigger to drive logistics expansion and growth.”
Shashi Kiran Shetty, Founder and Chairman, Allcargo Group
“The launch of 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, better coordination among multiple stakeholders, simplify processes and documentation and boost last-mile connectivity. The NLP will usher in more inclusive progress for our country with greater employment generation opportunities and efficient logistics services delivery, especially for small businesses. It brings a holistic approach to making India self-reliant and a global manufacturing hub. With an ambitious goal to bring down logistics costs by up to 25%, this could lead to a paradigm shift in the logistics industry in India and will boost India's export competitiveness in the global market. The NLP will act as a guiding and driving force for the new phase of growth."
Jagannarayan Padmanabhan, Director and Practice Leader-Transport and Logistics, CRISIL
“This is a holistic effort to increase the efficiencies of all aspects of the logistics value chain. Over the past five fiscals, the government has invested close to Rs 15 lakh crore in augmenting hard infrastructure such as roads, rail, ports and airports.
While this trend is expected to continue, streamlining of the functional aspects such as ease of movement, common interfaces/platforms for service providers and users, and skill development focused on the logistics vocations was imperative. The new policy clearly aims to achieve these.
Its right implementation and widespread adoption will help structurally reduce logistics costs and make a material difference to the growth of India's manufacturing and services sectors.”
Sachin Agrawal, Co-Founder & CEO, Bizongo
“As India emerges as a manufacturing hub, the National Logistics Policy will play a pivotal role in enabling MSMEs and the larger manufacturing industry achieve logistics and supply chain efficiencies. After the supply chains risks exposed by the pandemic and then the geopolitical tensions, the policy will not only promote seamless movement of goods and remove bottlenecks from supply chains but also empower businesses to boost delivery profitability, identify new revenue streams, and offer better customer experience. This in turn will reduce wastage, time, and costs and ensure India is on track with its net-zero goals.
However, the most integral part of the policy is the integration of technology and launch of single window e-logistics marketplace that will relieve the stress of shipment allocations and offer businesses more control over supply chains. This becomes even more integral as both B2B and B2C e-commerce markets expand rapidly in India. Considering that e-commerce has a direct impact on warehouse, logistics, and supply chain businesses, the pressure on these industries is also growing multifold. On one hand, the increasing competitiveness of the industry is compelling businesses to establish several fulfilment centers across the globe. While on the other hand, customers continue to demand more and expect swift deliveries. Here, the single window logistics platform will enable smart, proactive decision-making and promote the ease of doing business for various industry players. As we go forward it will be interesting to see increased use of automation and AI/ML solutions embedded into the platform to streamline first-mile to last-mile optimization and ensure error-free, rapid, and efficient dispatches.”
Mradul K, VP of Global Sales and Strategy, LogiNext
"Today is a memorable day for the Indian logistics sector. The launch of a new National Logistics Policy by our honorable Prime Minister Shri Narendra Modi, will set a new standard for a modern, digitally driven logistics sector. The Unified Logistics Interface Platform is a welcome move, which will bring in visibility in tracking, modern warehousing, and digitalisation of operations which are currently the need of the hour. The measures announced today- IDS — Integration of Digital System, ULIP — Unified Logistics interface Platform, ELOG — Ease of Logistics, and SIG — System Improvement Group, will help drive resiliency and sustainability in building a trusted logistics ecosystem that will power inclusive growth. We at LogiNext have also been spearheading the digitization of this sector and will continue to work with all stakeholders involved to take this to the next level."
Swarup Bose, Founder and CEO, Celsius
“The NLP has been a much-awaited reform policy and I am happy with the challenges that the policy aims to address in various aspects of Logistics. Especially with the introduction of the Unified Logistics Interface Platform (ULIP), I think we will be able to create a tech-enabled national platform that can fast-track digitisation in the sector and help drive transparency and operational efficiency through data-driven insights.
Additionally, the GatiShakti initiative, which aims to build a national master plan for multi-modal connectivity, is a great boost for creating a seamless supply chain network. From the perspective of a cold supply chain marketplace like ours, this would be significant as it provides us with a strong base of transport infrastructure. This will be the key to creating an unbroken cold supply chain network which is the need of the hour for temperature-controlled food and pharma logistics. The policy also aims to effectively complement the manufacturing, retail and export sectors, which can accelerate growth in international trade, thus putting India on a growth trajectory.
The NLP will also help create better accessibility for remote and difficult terrains through drones and help fuel other such innovations, driving overall efficacy. Also, Digital freight networks will grow exponentially due to this policy, ensuring return loads and lower dead miles for the transporters.
Lastly, initiatives like the E-Log, standardisation of warehousing, paperless, digital documentation, GatiShakti Vishwa Vidyalaya for training and upskilling of drivers and handlers, and thrust on greener transportation through EV’s etc., are all powerful reforms that will set the pace to building an efficient, cost-effective, and tech-enabled logistic sector for India. As a SaaS-based marketplace ourselves, with a focus on digitisation of cold supply chains, we are very happy with the government's efforts in the direction of cutting the logistic costs while making it more robust and effective and will pave a new path for India, driving it toward becoming the 5 trillion economy.”
Pervinder Singh Chawla, Co-Founder, OnMove by Zast Logisolutions
''The much-awaited New Logistics Policy is a transformative approach for economic growth and sustainable development. It creates a path for Logistics to contribute to the economy and GDP of the country in a positive manner. With strong focus towards creating a single-window e-logistics market, the generation of employment, skills and making medium and small enterprises competitive, the Policy will streamline the supply chain process. In India, where the road transportation dominates the logistics sector, with a dominant share of 60 percent, the shift towards multimodal infrastructure with a mix of rail, shipping, road, and air transport, will help reduce the congestion on roads along with low crude import bills. The policy addresses the pre-existing concerns in India’s logistics sector from a global perspective. The comprehensive areas mentioned in the Policy, like process re-engineering, paperless supply chain, seamless multimodal transport and modern connectivity for ease of doing business & reducing logistics costs, will help the country reach its economic goals. The sector-specific Logistics plan and strengthened cooperative federalism will make India a Global Digital Logistics Hub. Gati shakti Vishwavidyalaya will act as a Human Resource for drivers and others. New courses and skill development training programmes at UG and PG level will boost the Indian economy by enhancing the employment rate. The NLP also formalises the logistics sector by introducing a Unified Logistics Interface Platform (ULIP). Ease of Logistics Services Portal (E-Log) will build a Digital Regulatory Interface. The reduction in transaction costs will catalyze the trade while enhancing competitiveness and driving MSMEs sector through cost-efficient logistics. Overall, the NLP is a holistic approach to help India set a global benchmark and become one of the Top 25 Logistics Performers in the world.''
Zaiba Sarang, Co-founder, iThink Logistics
''NLP aims at reducing the logistics cost from 13% to a single digit. Drones will soon contribute to agricultural logistics from remotest regions of Himalayas or remote islands their product will be made accessible to the Metro region of India. ULIP, ELOG, Gati Shakti and many more initiatives will try to deliver a cheetah speed to logistics of India. NLP gives the smallest of person in the ecosystem to get access to information that was available to key stakeholders only.85% owner owning less than 10 trucks and their empty trucks can pick up the goods from best place which will yield them higher return. 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. Currently, logistics is providing livelihood to more than 22 million people, with one of the initiatives aimed at upskilling and increasing employment opportunities. At the grassroots level NLP also helps truck drivers to get a peaceful night. Along with the normal people in the ecosystem it will also help the Shramik class to get respect and dignity.''
Agendra Kumar, MD, Esri India
“The National Logistics policy (NLP) will drive the much-needed tectonic shift in the sector towards digitization, thereby transforming the entire ecosystem towards fulfilling the vision of Atmanirbhar Bharat. Technologies like Artificial Intelligence, GIS, drones and others will be instrumental in IDS- Integration of Digital System, ULIP — Unified Logistics interface Platform, SIG — System Improvement Group, the key pillars of NLP. The PM Gati Shakti master plan integrated with GIS data layers will be important in providing technology-based, seamless, multi-modal connectivity. This integration will usher in a new chapter for the logistics sector, enabling faster decision-making and roll-out of critical projects, to give a competitive push to our exports.”
Rizwan Soomar, CEO and MD, DP World Subcontinent
“The launch of the National Logistics Policy is a seminal moment for India’s logistics sector. The multi-pronged approach by the Government adopted in the policy to suggest regulatory and procedural reforms across infrastructure, services and human capital provides a comprehensive strategic direction to the sector and will be a key catalyst in attracting investments.
The focal push for digitisation through platforms like ULIP and E-LogS is crucial to support the designed Services Improvement Framework in improving regulatory inter-operability, standardisation of logistic processes and in bringing the entire multimodal network onto a single digital dashboard, enhancing visibility and transparency for all stakeholders. The suggested Services Improvement Group will significantly bolster coordination across governance frameworks to energise the logistic chains to contribute geometrically in the PM GATI Shakti National Master Plan, improving efficiency and reducing logistics costs.
The policy’s focus on promoting green logistics, by increasing the freight share for sustainable modes of transport like rail, inland waterways and coastal shipping is also a welcome move. The Comprehensive Logistics Action Plan and its carefully crafted eight pillars will help operationalise the NLP in its quest to build sound logistics infrastructure in the country helping make Indian exports competitive and provide a gateway for businesses to seamlessly mesh with global value chains.”
Sandeep Wadhwa, Chairman Logistics Committee, PHDCCI
“The National Logistics Policy will reduce our dependence upon road transport & will integrate the air, road & water mode of transport to reduce the cost of logistics in India considerably and to make our domestic trade and international trade more economical eventually. Also, this policy aims to make logistics industry more digitised for better integration & Coordination with the trade, which will increase the ease of business & facilitate the trade & make India reach greater heights. It is a path breaking move by the PM. And the Ministry of Commerce & Industry has worked tirelessly to make this happen.”
Ashish Mohan Wig, Chairman Gati Shakti Development Forum, PHDCCI
“Desh ki pragati ko Gati will be given by the National Logistic Policy. National Logistic Policy and PM Gati Shakti will work as double engine to India’s economic progress. Last mile connectivity will be addressed. Reduction in agri wastage due to proper and planned logistics where costing will be worked out along with giving all alternate sources of transport available.”
Ashish Mohan Wig, Chairman Gati Shakti Development Forum, PHDCCI
“Considering India to be 5th largest economy, this policy was inevitable. Releasing cheetah in the morning and releasing national logistic policy in the evening can be indicative of how the nation wants logistics to move - at cheetah speed with integration of different modes of transport. Policy on its own is not progress / result. Policy with performance = progress. Without any policy we would not know how and where to go, but we need to work on it. This policy has 8 years of dedicated hard work. It is for systematic infra development. Bharat mala, Sagarmala are initiatives in this direction. Turnaround time of containers has been reduced from 44 hrs to 26 hrs.”
Rishi Sanghvi, Co-Chairman, National Council on Logistics, ASSOCHAM & MD, Sanghvi Movers Limited
“As the logistics sector is one of the country's most important trade accelerators, the National Logistics Policy will play an important role in the nation's robust economic growth.”
Sanjay Bhatia, CEO and Co-founder, Freightwalla
“The logistics industry in India is currently marred with multiple challenges like transportation roadblocks, shipping woes and lack of technological infrastructure, which hinder its competition with developed economies due to the unorganised structure, manual interface and fragmented nature. Implementing cutting-edge technology, introducing digitisation to the last mile manufacturing stakeholders, including MSMEs and establishing a robust network with world-class infrastructure will transform the shipping and logistics sector with the new logistics policy. Going for a paperless system has been a long pending demand and implementing the same will bring down the time involved in shipping and eradicating corruption at any level.
Adding to it, establishing a single point of contact for all the logistical and supply chain challenges will speed up the process and bring down the overall cost by approximately 10%, a significant concern raised by the industry. The policy's primary motive is to create a conducive environment for the MSMEs to ship their goods to various parts of the country and the world.
Establishing a robust multimodal logistics hub and developing newer inland waterways will reduce the pressure on roads and rails. We believe the inclusion of product-linked incentives to build and boost the container manufacturing sector in the policy document would have helped solve the challenge of container shortages in the future.
Overall, National Logistics Policy has addressed the industry's significant challenges by providing practical and sustainable solutions. Marrying seamless technology with superior infrastructure to build an all-inclusive logistics and supply chain ecosystem will unfold the new era of India's logistics industry."
Deepak Tiwari, COO, KSH Logistics
"The National logistics policy is a mantra for the logistics fraternity and is a guide on how to move towards improving efficiency and reducing cost while reaching global standards. The e-handbook on warehousing standards will be beneficial in creating uniformity and best practices across warehouses."
Snehil Singhai, Head of Business Development, KSH Logistics
"The focus on skill and human resource development will prove advantageous for the industry. Gender equality will play a vital role in NLP implementation."
Arshdeep Singh Mundi, MD, Jujhar Logistics
“National Logistics Policy (NLP) is a significant step towards strengthening the logistics sector by means of integration of efficient measures. Cost reduction from 14-18 percent of GDP 8 percent by 2030, to meet the global benchmarking along with an ambitious focus at improving Logistics Performance Index (LPI) ranking are some of the transformational steps for the entire ecosystem. Alongside these, means such as data-driven decision support systems (DSS), Unified Logistics Interface Platform (ULIP) and Logistics Services (E-Logs) are some of the key capacity building blocks that will eventually address prevailing challenges.”
Prem Kishan Gupta, Chairman & MD, Gateway Distriparks
“The National Logistics Policy is a big step towards policy reforms of logistics sector creating a unified platform for all the different stakeholders in the sector to come together on one platform, in particular railway infrastructure development with last mile connectivity. It will improve speed of cargo movement that will directly benefit the industrial production thereby facilitating import and export business. The faster movement by way of multimodal facility will enable reducing the logistics cost. The government’s aim to bring down the cost to single digit in the next five years will enable key domestic players to be at par with the international market. The completion of DFC project which the government targets to finish in the next 12 months will be a major boost to the exporters helping them to meet the time deadlines, compete globally and increased volumes thereby contributing to the economic growth of the country and moving further up from the current position."
