The National Logistics Policy (NLP), dubbed the nation’s first comprehensive strategy for the $200 billion sector, was introduced by Prime Minister Narendra Modi on Saturday to help the nation’s logistics industry. The new policy is being presented on Prime Minister Modi’s birthday after being initially mentioned in Finance Minister Nirmala Sitharaman’s address on the Budget 2020. To close the efficiency gap, the new strategy will introduce a coordinated and technologically advanced approach to logistical operations. “We have the fifth-largest economy in the world. We have been successful in meeting the new export goals that India has set. India is becoming a major center for manufacturing, and people throughout the world are starting to realize this. NLP will give it a new drive, according to Modi. The turnaround time for cargo ships at ports has been shortened from 44 hours to 26 hours, according to Modi.
To promote exports, 40 air cargo terminals have been built, 30 airports have cold storage facilities, and 35 multimodal logistics facilities are being built. New environmentally friendly waterways are also being constructed. He emphasized how the GST has simplified paperwork for interstate transportation of products. According to him, drone transportation is also going to become a crucial logistical route. We already have. India is placed 44th in terms of logistics expenses in the World Bank Logistics Index of 2018, which is the most recent data available, behind nations like China and Vietnam, who are ranked 26th and 39th, respectively. As opposed to 7-8% in industrialized nations, the cost of logistics is projected to be 13-14% of GDP in India. According to an Arthur D. Little-CII assessment, India now has a $180 billion competitiveness gap due to higher logistics costs, and this gap is expected to increase to $500 billion by 2030.
