The National Logistics Policy (NLP) formulated by the Ministry of Commerce and Industry was launched in September 2022. It aims to lower the cost of logistics from the existing 13-14% and lead it to par with other developed countries. The Policy lays down an overarching interdisciplinary, cross- sectoral, multi-jurisdictional and comprehensive policy framework for the logistics sector. The policy complements the PM GatiShakti National Master Plan. Following major steps would be taken under NLP that have the potential to transform India’s logistics ecosystem:

• Integration of Digital System (IDS): There will be digital integration of different systems of seven various departments (like road transport, railways, aviation, commerce ministries and foreign trade). The digital data of these ministries is to be integrated under the IDS. This will help smoothen cargo movement and reduce logistical costs,
• Unified Logistics Interface Platform (ULIP): This will ensure shorter and smoother cargo movement and enable the exchange of information confidentially on a real-time basis.
• Ease of Logistics: E-Logs, a new digital platform, will allow industry to directly take up operational issues with government agencies for speedy resolution. It will enable and ensure the ease of logistics business through transparency and accessibility.
• System Improvement Group: It will monitor all logistics-related projects regularly through a group of officers from ministries concerned.

The above-mentioned processes will not only help in streamlining the regulatory environment in the country but also boost employment creation:

• Growth of the sector: According to the Ministry of Commerce and Industry, the Indian logistics sector provides livelihood to more than 22 million people and improving the sector will facilitate a 10% decrease in indirect logistics cost leading to the growth of 5 to 8% in exports.
  • The NLP policy would accelerate hiring and creating new job roles in transport, supply chain management, digital warehousing and other fields and would also help the economy to recover from challenges faced during pandemic.
• Multiplier effect: The policy would significantly impact the manufacturing and infrastructure sectors, potentially making India the next global manufacturing hub. Infrastructure development has a multiplier effect on the economy, fuelling faster job creation in the cement, steel, and machinery subsectors of the construction industry.
• Human Resources Development: Most entry-level workers in India are hired by the infrastructure and construction industries. Providing them access to a skilling ecosystem can further boost their productivity, earnings potential, return on investment (ROI), and project turnaround time.

NLP is a significant step as it endeavours to make India to be among the top 25 countries by 2030 in the Logistics Performance Index ranking, and create data driven decision support mechanism for an efficient logistics ecosystem. However, for its effective implementation and desired outcome all stakeholders including the states should be aligned to the stated objectives of the policy.