India’s much-awaited National Logistics Policy set for release on September 17

Prime Minister Narendra Modi will unveil the national logistics policy on Saturday, September 17. First announced in Budget 2020, this comprehensive action plan is aimed at promoting seamless movement of goods across the country at a reasonable cost and generating employment.

Besides, the policy is expected to focus on several other areas such as process re-engineering, digitisation, and multi-modal transport.

According to the government, improving the sector will facilitate 10 per cent decrease in indirect cost leading to a 5 to 8 per cent rise in exports.

This move is significant according to experts because of the fact that high logistics cost brings down the competitiveness of domestic goods in the international market. It is being brought in line with PM’s ambitious GatiShakti national master plan that was launched to build robust infrastructure, fill the missing gaps in logistics and draw more investments into the country.

Logistics is a complex sector with over 20 government agencies, 40 PGAs (Partner Government Agencies), 37 export promotion councils, 500 certifications, over 10,000 commodities, and $160 billion market size.

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

There is no single department which manages the sector, as it is currently being managed by multiple ministries including road transport, shipping, railways, civil aviation, posts and commerce and industry, and finance.

The worth of Indian logistics market is estimated at over $200 billion. The sector provides livelihood to more than 22 million people.