Overall action plan formulated within the framework of the national logistics policy

A comprehensive action plan, the integration of logistics-related digital systems and an online mechanism for the secure exchange of documents are key elements of the national logistics policy released by Prime Minister Narendra Modi on Saturday.

The three main objectives of the policy are to reduce logistics costs in India to be comparable to global benchmarks by 2030; effort to bring India among the top 20 countries by 2030 in the Logistics Performance Index ranking and creation of a data-driven decision support mechanism for an efficient logistics ecosystem.

The vision is to develop a technologically enabled, integrated, profitable, resilient and sustainable logistics ecosystem in the country for accelerated growth.

The policy aims to reduce the cost of logistics from around 13% of GDP to 7.5% of GDP and create jobs in the coming years.

Logistics Division Special Secretary Amrit Lal Meena told PTI that the policy will provide a multi-modal digital connectivity solution.

Key parameters of the policy would include harmonization and standardization, trade and transport facilitation, digitalization and skills development.

The proposed action plan would include integrated digital logistics systems; standardization of physical assets and benchmarking of service quality standards, state commitment, human resource development and capacity building, export-import logistics, sector plans for efficient logistics and facilitating the development of logistics parks, the official added.

Within the framework of human resources development, emphasis would be placed on the integration of logistics in higher education; and the development of online training programs.

A working group would be formed with a mandate to identify areas for action.

In the context of import-export logistics, the focus would be on resolving infrastructural and procedural deficiencies; and the development of institutional mechanisms for trade facilitation.

Similarly, under the service improvement framework, the policy would speak of improving the regulatory interface to enable consistency across sectors.

An Empowered Secretaries Group (EGoS), constituted under Prime Minister Gati Shakti, would monitor and review the implementation of the policy.

A service improvement group would be there to resolve user issues.

India’s high logistics costs impact both foreign and domestic trade. The cost in India is estimated at 13-14% of gross domestic product compared to 9-10% in the United States and Europe and 11% in Japan.

According to the Ministry of Commerce, the sector is complex with over 20 government agencies, 40 PGAs (partner government agencies), 37 export promotion councils, 500 certifications, over 10,000 products and a $160 billion market.

It also involves 200 shipping agencies, 36 logistics services, 129 ICDs (Inland Container Depots), 168 CFS (Container Freight Stations), 50 IT ecosystems, banks and insurance companies.

(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)