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Draft National Logistics Policy 2018

Draft of National Logistic Policy has been unveiled.

What are the key objectives of the policy?

The policy outlines an ambitious set of following objectives,

a) Creation of a single point of reference for all logistics and trade facilitation matters in the country.

b) Incorporation of standard global standards to more the logistic sector more efficient, transparent, performance oriented.

c)  Creation of a ‘National Logistics e-marketplace’ as a one-stop marketplace.

d) Encouraging industry, academia, and government to come together to create a logistics ‘Centre of Excellence’.

e) Improve India’s ranking in the Logistics Performance Index to between 25 to 30.

f) Creation of separate fund for start-ups.

g) Export competitiveness enhancement

h) Doubling employment by generating 10-15 million jobs along with focussing on enhancing skills and encouraging gender diversity.

i) Encouraging adoption of green logistics in the country.

Why is this policy important?

a) India’s logistics sector is very huge, roughly around 215 billion dollars in size and increasing by around 10% annually.

b) However, because of problems such as inadequate infrastructure, no strong supply chain, policy overlap, lack of organization, etc., it has not been used up to its full potential.

c) The policy seeks to organize the logistics sectors more efficiently along with doubling the employment.

d) It aims to bring all stakeholders in the logistics chain for its overall development.

e) Development of start-up ecosystems can transform the logistic system by bringing innovation.

f) Implementation of a unified portal can make the sector more transparent, globally competitive, organized, affordable.

So, this comprehensive policy is important for the sector.

Where does the policy need to focus?

a) The Policy doesn’t recognize the role of states very well. States contribution and policies can help the sector to achieve last-mile connectivity.

b) Portal doesn’t solve specific issues in all states and focusses more on general issues. As there are no such portals built by states, specific issues should be resolved through the portal.

c) Stability of the investment is very important for long- term development. Draft Policy should work on it.

How to improve the situation?

a) A network of Multi-Modal Logistics Park should be developed along with the facilitation of e-commerce.

b) State’s role should be recognized and they should be given more space.

c) Some interventions should be introduced to reduce logistics cost and promote logistics efficiency for movement of key commodities.

d) Indian warehousing market is highly fragmented and unorganized. More attention should be given to improve it.