National Logistics Policy can lead to export growth of 5-8%, says expert

The much anticipated National Logistics Policy was unveiled on September 17 by Prime Minister Narendra Modi. The policy aims to promote seamless movement of goods, enhance competitiveness with focus on reducing logistics cost from current 13-14 percent of GDP to 8 percent by 2030 in consonance with global practices.

In a bid to accelerate digitisation of the logistics sector, the National Logistics Policy has ideated a unified logistics interface platform to monitor cargo movement as well.

The policy also looks at developing logistic parks, benchmarking service standards, standarisation of physical assets among others.

In an interview to CNBC-TV18, Amrit Lal Meena, Special Secretary of Logistics at Commerce Ministry said, “This policy has been formulated after extensive consultation with the industry stakeholders and concerned ministries. Along with unified logistics interface platform, the multi-modal digital connectivity platform has been launched which we have pilot tested with the logistics service players and now it is available.”

He added that a portal has been created to facilitate resolution of issues of logistic industry associations.

“For ease of logistics services and to facilitate resolution of issues of logistic industry associations a portal has been created. We will shortly be registering all the industry associations and they will be facilitated to raise the issues which are impacting their efficiency and performance”, Meena said.

Subhrakant Panda, Senior VP at FICCI and MD of IMFA believes that the policy can lead to an export growth of 5-8 percent.

Panda said, “The National Logistics Policy will now bring greater focus on logistics through world class infrastructure and other physical assets etc. The policy is not only comprehensive but also has impressive degree of granularity. So at a macro level there is a target to bring logistics cost down to 8 percent of GDP but there are sector specific plans as well. So this policy is a combination of both macro as well as micro. I believe the policy will put India on a path to significantly improve its competitiveness and can lead to export growth of 5-8 percent.”