National Logistics Policy - 2022

Introduction

According to the World Bank's Logistics Performance Index, which rates nations according to their overall logistics performance, the Indian logistics industry was 44th worldwide in 2018. At a 13–14% GDP, India has considerably higher logistics costs than most developed nations (8–10%). The latest National Logistics Policy 2022 (NLP) is aimed at establishing an e-logistics marketplace that will also focus on helping MSMEs grow their competitiveness, capabilities, and employment opportunities. This policy aims to develop a reliable, strong, affordable, technologically enabled, and integrated national logistics ecosystem for equitable and rapid growth.

Need for NLP

The logistics industry in India employs over 22 million individuals, and the industry continues to grow every year due to technological advancements. Customers all over India now choose to purchase products using mobile apps and eCommerce stores and have them delivered to their homes, preferably on the same day. But the Indian Logistics industry is currently considered inefficient due to high logistics expenses and the absence of trustworthy solutions. The NLP has been designed to address numerous challenges in the Indian supply chain industry, including costs, services, sustainability, and environmental impacts.

Objectives of the National Logistics Policy 2022

The National Logistics Policy 2022 (NLP) aims to reduce the logistics cost of the country to below 10% of the nation's GDP from its present 14%.  This ambitious program aims to increase the competitiveness of Indian exports while also encouraging economic expansion and job creation. It also aims to integrate India's transportation services and infrastructure into a major global logistics center. To address worries about high costs and inefficiencies, it offers a wide, cross-sectoral, multi-jurisdictional framework to expand the logistics ecosystem.

The important objectives can be summarized as follows:

• improving last-mile connectivity
• promoting automation and the implementation of technology
• enhancing transport connectivity and infrastructure
• promoting investment in the private sector
• maximizing resource utilization

Key components of NLP

The three critical components of NLP include:

Comprehensive Logistics Action Plan (CLAP)

This serves as the foundation of NLP and is the conduit via which all initiatives are carried out. Its eight main areas of activity are listed below:

• Facilitation of Development of Logistics Parks
• Sectoral Plan for Efficient Logistics
• Service Improvement framework
• Export-Import (EXIM) Logistics
• State Engagement
• Logistics HR Development and Capacity Building
• Standardization of physical assets and benchmarking service quality standards
• Integrated Digital Logistics Systems

Unified Logistics Interface Platform (ULIP)

ULIP is a one-stop open-source solutions platform that links software developers with logistics companies to make the logistics process easier. This is achieved by creating mobile applications with user-friendly interfaces for end users or customers. It has three layers:

• An integration layer that promotes the delivery of products or services, modular applications with Data Exchanges, APIs, and which makes interoperability easier.
• A governance layer that lays down the rules and regulations for the logistics ecosystem.
• A presentation layer that promotes the creation of user-friendly applications for end users or clients by the private sector. Software vendors can highlight their technological innovations that would assist a quick and easy process.

Dashboard for Ease of Logistics Services (E-LogS)

This is a single gateway to enable timely responses to user complaints and feedback, like:

• submission of inquiries and comments on logistics service
• decision-making based on evidence
• digitalized recording, monitoring, and settlement
• established escalation matrices and service-level contracts
• repository of Institutional Knowledge

Conclusion

The National Logistics policy for 2022 is a much-needed initiative that will help streamline India's logistics sector. It is a holistic and comprehensive policy covering all logistics aspects. The policy will go a long way in reducing costs and improving the efficiency and competitiveness of the Indian logistics sector.

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