PM Modi to unveil much-awaited National Logistics Policy today
Prime Minister Narendra Modi is slated to launch the new National Logistics Policy (NLP) on Saturday. The development is crucial in light of the industry's massive losses during the COVID-19 pandemic. According to reports, the program might be a game changer aimed at making India a logistics center with increased economic activity by 2030. Here's a sneak peek at the policy.
Why does this story matter?
Over 22 million individuals earn a livelihood from the Indian logistics business, according to government estimates, which is worth over $200 billion. Experts claim that the policy can reduce high logistics costs from their present levels of 13-14% of GDP to 8% by 2030. India's logistics industries have been impatiently awaiting the regulation for many years, especially in the wake of the pandemic.
Policy implementation expected to reduce expenditure to 10%
According to the policy, the government sought to establish a single point of contact for all logistical and trade facilitation issues. It will lower expenditures to 10% in five years. The logistics industry is predicted to account for 13-14 % of GDP. Following the implementation of the program, India will reduce its reliance on road transport for freight transfer.
Skilling, job creation also part of the policy
Officials claim that PM Modi would also probably release an electronic guide on the standardization of the physical asset warehouse. They stated that skilling will receive particular consideration under the policy. The government is also planning to include it in the curriculum or training programs at various levels. Another major objective of this approach will be to create jobs, as per officials.
What did officials say?
"The NLP will streamline and provide a roadmap to the government's plan to transport 50 percent of all cargo in the country through the Indian Railways and it will also help reduce congestion on Indian roads and help reduce India's crude import bill," a senior government official said. An expert committee will overlook the policy implementation, he said.
Special mention by Sitharaman in her Budget speech
"The NLP will clarify the roles of Union government, state governments, and key regulators. It will create a single-window e-logistics market and focus on the generation of employment, skills and making medium and small enterprises competitive," Finance Minister Nirmala Sitharaman said in her Budget speech.
Policy draft formed in 2019
The Policy was recently introduced in the Budget for 2022-23 by the Finance Minister. According to reports, the Central Government has been working on the NLP for the past three years. The commerce ministry submitted a draft logistics strategy for consultation in 2019, but it was postponed because of the COVID-19 epidemic, the reports said.
