National Logistics Policy: Shares of major Logistics companies trade in a mix bag

While Shares of CONCOR are up by 2.3 percent, TCI Express is up by 1.29 percent, Blue Dart Express has climbed over 1.2 percent and VRL Logistics is also trading green and is up by 1.28 percent.

The National Logistics Policy seeks to address challenges facing the transport sector and bring down the logistics cost for businesses from 13-14 percent to a single digit. It aims to promote a seamless movement of goods across the country, commerce and industry minister Piyush Goyal said on September 13.

“The government has emphasised the need to reduce logistics costs in the country from the current levels of 13-14 percent of GDP,” the minister said.

In the proposed logistics sector action plan, digital logistics systems will be integrated, physical assets will be standardised, and service quality standards will be benchmarked, the state will be involved, human resources development and capacity building will be implemented, and export-import logistics will be undertaken, sector-based logistics plans will be developed, and logistics parks will be developed, as reported by news agency PTI.

Over 20 government agencies, 40 partner government agencies (PGAs), 37 export promotion councils, 500 certifications, over 10,000 commodities, and a market size of $160 billion make up the logistics sector. It also involves 200 shipping agencies, 36 logistics services, 129 inland container depots, 168 container freight stations and 50 IT ecosystems, banks and insurance agencies.

After two years of delay by the pandemic, the National Logistics Policy will streamline regulations, address supply-side restrictions, and establish a path for lowering fuel and logistics costs to encourage quicker growth.

The National Logistics Policy has been a focus of the Union government for three years.

The Covid-19 epidemic caused the release of the proposed logistics policy from the commerce ministry for consultation in 2019 to be postponed. Nirmala Sitharaman, the finance minister, once more declared the National Logistics Policy in the budget for 2022–2023

The draft policy provides for the government creating a single point of reference for all logistics and trade facilitation matters, reducing costs for the logistics sector to 10 per cent in five years. The logistics sector is estimated at 13-14 percent of GDP.

(With inputs from PTI)