The National Logistics Policy will have a significant impact on the country's logistics industry
. Since logistics is at the foundation of practically all economic sectors, there has long been a fundamental need for a national logistics policy. When compared to other established economies, India's logistics costs are high, which lowers its ability to compete on price and in international commerce. Along with producing jobs, the new legislation is certain to boost the nation's standing in international rankings and open the door for it to develop into a logistics hub.
The logistics industry in India is seen to be very fragmented at the moment, and the goal of this national strategy is to lower the cost of logistics from its current 14 percent of GDP to less than 10 percent by 2022. With more than 20 government agencies, 40 PGAs, 37 export promotion councils, 500 certifications, 10,000 commodities, and a 160 billion market size, India's logistics industry is extremely complicated.
A total of 1.2 crore people are employed in the industry, along with 200 shipping companies, 36 logistics providers, 129 ICDs, 168 CFSs, 50 IT ecosystems, and banks and insurance companies. For EXIM, an additional 81 authority and 500 certifications are needed.
The goal of the programme is to make Indian goods more competitive while also promoting economic growth and expanding job options. It has been the goal to create cutting-edge infrastructure of the highest caliber that supports a thriving logistics sector. In this post, let's look at how.
Break Away from the Silo’s
Eliminating silo processes and including end-to-end logistics is a major component of NLP. Regardless of whether they are transported by road, rail, or another method, shippers want to get their products from point A to point B. They care more about getting their items to the destination they specify quickly, safely, and safely. This should be manageable for the logistics players.