10 Dec

National Logistics Policy, 2022

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Content

• Introduction
• Significance

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Introduction

• The vision of NLP is ” to develop a technologically enabled, integrated, cost-efficient, resilient, sustainable and trusted logistics ecosystem in the country for accelerated and inclusive growth”
  • The Targets for achieving the vision of NLP are to
    • reduce the cost of logistics in India to be comparable to global benchmarks by 2030;
    • improve the Logistics Performance Index ranking – endeavour is to be among the top 25 countries by 2030, and
    • create a data driven decision support mechanism for an efficient logistics ecosystem.
  • The policy thus seeks to pave the way for India to become a logistic hub by leveraging
    technology, processes and skilled manpower.
• The Policy has four key features (four key pillars): Integration of Digital System (IDS); Unified Logistics Interface Platform (ULIP); Ease of Logistics (ELOG); and System Improvement Group (SIG);
  • Under IDS, 30 different systems of seven departments are integrated – including data from the road transport, railways, customs, aviation and commerce departments.
  • ULIP would bring all digital services related to the transportation sector into a single platform.
  • Ease of Logistics (E-Logs) is a new digital platform which has been started for industry associations to resolve issues by reaching out to the government.
  • Systematic Improvement Group (SIG) has been created along with the Network Planning Group (NPG) to improve coordination across government ministries and between the state and central governments.
• The policy will be implemented through CLAP (Comprehensive Logistics Action Plan), which proposes the following interventions:
  • Integrating digital logistics systems to develop a system of unified logistic interface
  • Sectoral Plan For Efficient Logistics
  • Facilitating the development of logistics Park
  • EXIM logistics
  • Logistics manpower skill development and capacity building
  • Service Improvement Program
  • Standardizations of physical assets and benchmarking service quality standards
  • Engagement with different Indian states
• The government has also launched a Unified Logistics Interface Platform (ULIP) under NLP.
  • The ULIP platform will enable various stakeholders like industry players to get secure access to information related to logistics (e.g. cargo movement) and resource available with various ministries
    • It will also democratize information. It will contribute to abolition of monopoly and un-levelled advantage.
• It integrates 7 ministries on one platform. It will also integrate 17 digital platforms from seven ministries on ULIP.
• It will also help provide cargo movement clearance.
• It also has dedicated portal that makes the process of data requests simpler, faster, and transparent.
• ULIP will have direct and benefits to all logistic stakeholders like verification of drivers and vehicles details in a single click, tracking and tracing consignment, route optimization planning, a timely update on the destination of the consignment etc.

Significance:

• NLP has the potential to bring a revolutionary approach to the nation’s logistics environment, boosting the effectiveness of supply chains.
• It would increase warehousing capacity and facilitate quicker movement of goods closer to
  consumer.
• It will also lead to strengthening of other sectors like manufacturing tourism etc.
• It is going to improve overall productivity of workforce by reducing their time spent in travel.
• Improved logistic sector can also be an important factor attracting foreign investments.
• It will benefit the farmers greatly as it would allow farmers to market their goods more swiftly, reduce waste, and avoid unnecessary delays, all of which would cut overall price.
• It will contribute to improved competitiveness of Indian export goods.
• Reduce complexity by reducing multiplicity of authorities through ULIP.
• ULIP will also enhance visibility for customers and enable logistic companies to adopt digitization on a much larger scale.

Way Forward:

• Railway freight trains’ speed have remained stagnant for many decades at around 25km/hour. This has to be improved on priority to make Logistic sector more effective
• Inland waterways have huge potential in the country and have remained under utilized for long.
• NLP has to function in conjunction with Gati Shakti, Sagarmala, Bharat Mala etc. to achieve the goal.
• Take feedback from all the stakeholders and evolve the policy and its implementation with changes in technologies and feedbacks.

Conclusion:

• The National Logistics Policy thus aims to bring ease of doing business in the logistics sector by simplifying the logistics processes, improving its efficiency bringing in transparency and visibility, and reducing logistics cost and time.

Practice Question:

“The National Logistic Policy 2022 has the potential to impact all three sectors of the economy
– primary, secondary and tertiary” Discuss [10 marks, 150 words]