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DRAFT NATIONAL LOGISTICS POLICY (Government Initiatives for Logistic…
DRAFT NATIONAL LOGISTICS POLICY
Background
Recently, Ministry of Commerce and Industry released Draft National Logistics Policy
Need of the policy
Fragmented Policy approach
Different parts of the logistics value chain currently are being managed by multiple ministries and agencies
High Logistics Cost
logistics cost in India is very high i.e. 13-14% of GDP as compared to USA 9-10%, Europe 10%, Japan 11%.
Skewed modal transportation mix
60% of freight moving on roads. It is significantly larger than in key developed economies
Emerging new trends
specific skill set, environmentally friendly logistic and resilience to cyber threat demand an overhauling of man-power
Government Initiatives for Logistic Sector
Logistic sector has been given infrastructure status in 2017, which will ease-out fund related and other logistic bottlenecks
Government proposed a Logistic Hub in Assam, with the aid of Asian Development bank
Government has launched Logistic Ease Across Different States (LEADS) index in order to look at logistic bottleneck at state level
Logistic Efficiency Enhancement programme was launched to improve India's logistics efficiency
GST solves the problem of complex tax structure for logistics thereby leading to efficient decision making by logistic firms
Highlights of Draft National Logistics Policy 2018
Policy Vision
To drive economic growth and trade competitiveness through a truly integrated, reliable and cost-effective logistics network, leveraging best in class technology, processes and skilled manpower
Policy objectives
Creating a single point of reference of knowledge and information sharing platform for logistic
Creating a National Logistics e-marketplace as a one stop marketplace.
Setting up a logistics data and analytics center (LDAC)
Driving logistics cost as a % of GDP down to 10% and incentivize the sectorto become more efficient by promoting integrated development ofogistics
Develop certain key corridors as ‘Model Logistics’ corridors
Driving development of Multi Modal Logistics Parks (MMLP) to enable seamless and world-class multimodal freight transfer
An integrated policy and a Multi Modal Logistics Park Authority should be established
Promoting cross regional trade on e-commerce platforms
Adoption of Warehouse Management System (WMS) and other IT ITdriven
solutions
Improving India’s ranking in the Logistics Performance Index
work on the six indicators of World Banks’ LPI - Custom; International Shipment; Tracking & Tracing of trace consignment; Infrastructure; Logistic Competence; Timeliness of consignment
Reducing losses due to agri-wastage toless than 5% and thereby enhance agriculture price realization and farmer income
Focus on providing specialized nature of requirements for packaging, transportation and storage of perishable commodities
Encouraging adoption of green
logistics in the country
Policy visualises a reduction in supply chain carbon foot print through duty rationalization on alternative fuels, improved vehicle design etc. and also focus will be placed on the 3R – Reduce, Reuse and Recycle in packaging
Some Other Objectives and Thrust Areas
Creating an Integrated National Logistics Action Plan
Enacting a Framework Act on Integrated Logistics
Institutional Framework & Governance for Logistics
Doubling employment in the logistics sector