National Logistics Policy (NLP), launched by the Government of India in
September 2022, aims to promote the seamless movement of goods, overcome
transport-related challenges, encourage digitisation and significantly reduce
logistics time and cost. The policy is
aimed at reducing India’s logistics cost considerably and bringing its
percentage of GDP in line with the developed economies. Reduced logistics costs
shall help improve India’s competitiveness, both in the domestic and export
markets, by improving efficiency across all sectors.
further, Mr. Suprio Banerjee, Vice-President & Sector Head, ICRA
Limited, said, “The Introduction of NLP is a long-term positive for the
Indian logistics industry, given its overall focus on attaining better
integration of different modes of transport, which in turn shall lead to faster
turnaround and higher efficiency. It is also expected to lower the cost of
logistics by reducing the over-dependence on the road sector, thereby reducing
congestion and ensuring better asset utilisation. Implementation challenges,
however, are expected as multiple agencies, stakeholders, and physical entities
are involved, which will require proper coordination for the successful
implementation of the policy. The
implementation will also entail heavy capital investments to be
benefits of the policy should also be evaluated against its compliance costs.
Nonetheless, the long-term benefits of the policy will outweigh the short-term
The salient features of the NLP include setting key targets, which
include a reduction in the logistics cost in India to be comparable to global
benchmarks by 2030 and be among the top 25 countries by 2030 (currently ranked
at 44) in the logistics performance index rankings as also creating a
data-driven decision support mechanism for an efficient logistics ecosystem.
The policy will be implemented through an eight-pronged Comprehensive Logistics
Action Plan (CLAP) encompassing the full spectrum of the sector.
also focuses on the Unified Logistics Interface Platform (ULIP), a single-window
platform for all transportation services, and a new digital platform, Ease
of Logistics Services (E-logs), for a quick resolution of issues raised by the
industry, reducing costs, preventing time leakages and ensuring better
The policy will also help in generating
employment and better skills, along with making medium and small enterprises
more competitive. It will lead to the higher formalisation of the industry and
reduce fragmentation in the sector. This is expected to enhance the efficiency
of last-mile connectivity and reduce the over-dependence on roads.