Mumbai(Commonwealth Union)_ Midway through September, India unveiled the National Logistics Policy (NLP), which aims to consolidate all digital services related to the transportation industry onto a single portal. India could become the next major hub for manufacturing thanks to the policy’s significant effects on the infrastructure and manufacturing sectors. It is also an effort to reduce the cost of the nation’s logistics, an area where human resources will be very important. The new policy will make it simpler for India to generate new jobs, advance in the global rankings and develop into a logistics powerhouse when coupled with current plans like the PM GatiShakti National Master Plan for Multi-Modal Connectivity.
Additionally, the Production Linked Incentive (PLI) program, which was put into place in February 2021 to increase manufacturing industry’s GDP contribution, would also result in job growth. It is noteworthy that more than 22 million people are employed in the logistics sector in India today, and that number is predicted to rise to 1.2 million by 2025.
Infrastructure growth is a significant additional factor influencing the expansion of Indian manufacturing. The construction industry’s cement, steel, and machinery subsectors all experience faster job growth as a result of the multiplier effect that infrastructure has on the economy. Future infrastructure projects in India, such as green expressways, ports, and corridors for inter- and intra-city traffic, will also ensure quicker movement of goods, less wastage, and lower transportation costs.
As a result, the export sector will be more competitive on both home and foreign markets. The country’s entire supply chain management will gain by 10% from the expected reduction in logistics costs from 13–14% to 8–9%, with about 5% help from the PLI scheme. This may completely alter India’s position on the world arena and enable the country to treble its exports in order to meet the requirements of the global supply chain. Additionally, in the long run, this would arm the federal and state governments with the tools they need to maintain parity with cutting edge logistics technology.
