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Government proposes national logistics policy, to reduce cost to less than 10% of GDP

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The commerce ministry has sough views of different departments on its proposed  which aims at enhancing productivity and competitiveness of manufacturers by reducing cost of , sources said. The proposed policy talks about developing national and state master plans for multi-modal connectivity; formulation of an umbrella national law; comprehensive standards for the sector; and developing IT applications to provide solutions that include track and trace for trucks, according to a PTI report.

Besides, the policy proposes development of short-term training courses for creation of a talented workforce, and promotion of green logistics enterprises and infrastructure.

To improve logistics for international trade, it proposes augmentation of physical facilities and land custom stations, improvement in inter-agency coordination to streamline inspection and testing, they said.

One of the sources said a robust logistics sector will help significantly in the sustainable economic growth of the country.

The ministry would seek the Cabinet approval for the policy. In the last Budget, the government had announced that it will come up with National Logistics Policy.

The move comes at a time when high logistics cost is impacting competitiveness of domestic goods in international market.

India’s logistics sector is highly fragmented and the government aims to reduce the logistics cost from the present 14 per cent of GDP (Gross Domestic Product) to less than 10 per cent by 2022.

According to an official statement, the sector is very complex with more than 20 government agencies, 40 partnering government agencies, 37 export promotion councils, 500 certifications, and 10,000 commodities.