The Four Key Actions for National Logistics Policy (NLP)
- Integration of Digital System (IDS): Systems from seven distinct departments will be digitally integrated (like road transport, railways, aviation, commerce ministries and foreign trade). The IDS integrates 30 distinct systems from these seven agencies.
- Platform for Unified Logistics Interface (ULIP): This guarantees quicker and more seamless cargo transportation and makes it possible for confidential real-time information exchange. This Logistics Data Bank Project of the National Industrial Corridor Development Corporation (NICDC) has been leveraged.
- Ease of Logistics (ELOG): It will promote and guarantee the business’s ease of logistics through openness and accessibility.
- Group for System Improvement: It will routinely keep an eye on all logistics-related initiatives.
National Logistics Policy 2022
The entire procedure of acquiring, storing, and delivering resources to their intended location is referred to as “logistics“. Among other things, it includes stock, tools, people, and raw materials. The National Logistics Policy was created to improve integration and cooperation between corporate entities, governmental organisations, and society at large in order to turn the Indian logistics industry into a significant driver of economic growth. The NLP strives to establish a thriving logistics ecosystem that encompasses all participants from many industries, including business, manufacturing, services, and agriculture. The NLP also offers a framework for supporting improved movement of commodities through contemporary transportation infrastructure across all modes of transportation, including roads, trains, waterways, etc., along with increasing the quality of traffic control systems. The goal of the strategy is to give multimodal connectivity infrastructure to various economic zones in addition to PM Modi’s Gati Shakti-National Master Plan, which was introduced in 2021. About eight years it took to develop NLP. Changes in policy and significant decisions are being taken to speed up last-mile delivery, put an end to transportation-related problems, save manufacturers time and money, and prevent the loss of agricultural products. Sector speed, value generation, and entrepreneurship will all increase when coordination is improved.
Inaugurating the eagerly expected National Logistics Policy was Indian Prime Minister Narendra Modi on September 17, 2022. By offering a framework for creating a sustainable and successful logistics business, it seeks to accelerate the transformation of the Indian logistics industry. After expanding at a CAGR of 7.8 percent over the previous five years, Investment Information and Credit Rating Agency of India Limited (ICRA) predicts that the industry will expand at a CAGR of 10.5 percent through 2025. In India, this industry employs more than 22 million people, and it is predicted that through skill development, it would expand at a rate of 5% over the next five years. Recently, the government announced the National Logistics Policy (NLP) 2022, with the goal of achieving “rapid last-mile delivery” and resolving transportation-related issues.