First announced in 2020, the NLP assumes significance as the current high logistics costs impact the competitiveness of domestic goods in the international market. The emphasis is on bringing down the country’s logistics cost from its current levels of 13 to 14 percent of the national GDP. Currently, the Indian logistics sector is valued at over USD 200 billion and is very complex.
It involves more than 20 government agencies, 40 PGAs, 37 export promotion councils, 500 certifications, over 10,000 commodities and 200 shipping agencies. It also accounts for 36 logistics services, 129 Inland Container Depots, 168 Container Freight Stations and 50 IT ecosystems, banks and insurance agencies.
Commerce and Industry Minister, Piyush Goyal
Overall, the Indian logistics sector provides livelihood to 200 million people and optimising the industry is projected to facilitate a 10 percent decrease in indirect logistics cost which will in return lead to a growth of 5 to 8 percent in exports.
Speaking at the 62nd SIAM Annual Convention, Mr. Vinod Aggarwal, Vice President, SIAM, said, “India is currently the fourth largest automaker behind China. In order to grow related industries it is important that we build our national infrastructure in which road infrastructure is of main importance. Better road infrastructure will help bring down logistics costs and boost exports.”
Far Left – Mr. Vinod Aggarwal, Vice President, SIAM with other delegates at 62nd SIAM Annual Convention.
Low-costs and seamless movement of goods could also attract foreign private investments into the country. This policy will also become another weapon to grow the automotive sector of the country, similar to Gati Shakti and the National Single Window Scheme (NSWS) portal.
With inputs from PTI