National Logistic Policy (NLP): Basics Explained

National Logistic Policy (NLP) aimed at easing the movement of goods and boosting the trade sector in the Indian economy. Currently, logistical costs, in India, account for 13 to 14% of India’s GDP, almost double of what the costs are in developed countries. . Due to high logistical cost, the competitiveness of India’s exports is greatly reduced.

             Logistics broadly includes facilities crucial to trade: transport services for the movement of goods, storage facilities that are particularly essential for trade in perishable goods such as food items, fruits, and vegetables, and smooth functioning of government services that facilitate trade such as licensing and customs

Four features of NLP : Integration of Digital System (IDS); Unified Logistics Interface Platform (ULIP); Ease of Logistics (ELOG); and System Improvement Group (SIG).

 Under the IDS, 30 different systems of seven departments are integrated – including data from the road transport, railways, customs, aviation and commerce departments.

A Unified Logistics Interface Platform ULIP will “bring all the digital services related to the transportation sector into a single portal.

New digital platform Ease of Logistics Services (E-Logs) has also been started for industry associations to resolve issues by reaching out to the government.

         The National Logistics Policy will be reinforced by the PM GatiShakti National Master Plan, which is further expected to provide multi-modal connectivity in various economic zones.

                    PM GatiShakti National Master Plan (PMGS-NMP) was launched on 13th October 2021 for providing multimodal connectivity infrastructure to various economic zones. The scope of PM GatiShakti National Master Plan will encompass the 7 engines for economic transformation, seamless multimodal connectivity and logistics efficiency. The touchstone of the Master Plan will be world-class modern infrastructure and logistics synergy among different modes of movement – both of people and goods – and location of projects. This will help raise productivity and accelerate economic growth and development.

              PM GatiShakti is a transformative approach for economic growth and sustainable development. The approach is driven by 7 engines, namely: Railways; Roads; Ports; Waterways; Airports; Mass Transport and Logistics Infrastructure.

                         All 7 engines will pull forward the economy in unison. These engines are supported by the complementary roles of Energy Transmission, IT Communication, Bulk Water & Sewerage, and Social Infrastructure.

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