National logistics policy

Subject : Economy

Context:

Prime Minister Narendra Modi on Saturday launched the National Logistics Policy (NLP) and the Unified Logistics Interface Platform ULIP

Need?

To bring down the logistics cost in India which is high compared to other developed economies.
- India spends around 13 to 14 percent of the GDP on logistics costs against 9-10 per cent in the US and Europe and 11 per cent in Japan
- According to the World Bank Logistics Index of 2018, India is ranked 44th in logistics costs.

Key features of the National Logistics Policy 2022:

Vision- develop a technologically enabled, integrated, cost-efficient, resilient, sustainable and trusted logistics ecosystem in the country for accelerated and inclusive growth.
Aim- reduce cost of logistics in India to be comparable to global benchmarks by 2030 endeavour to be among top 25 countries by 2030 in the Logistics Performance Index ranking, and create data driven decision support mechanism for an efficient logistics ecosystem.
The Policy will be implemented through a Comprehensive Logistics Action Plan (CLAP).
The interventions proposed under the CLAP are divided into eight key action areas:
- Integrated Digital Logistics Systems
- Standardisation of physical assets and benchmarking service quality standards
- Logistics Human Resources Development and Capacity Building
- State Engagement
- EXIM (Export-Import) Logistics
- Service Improvement framework
- Sectoral Plan for Efficient Logistics
- Facilitation of Development of Logistics Parks.

Unified Logistics Interface Platform:

It intends to create a National Single Window Logistics Portal.
ULIP will provide real-time monitoring of cargo movement and ensure confidentiality of data with end-to-end encryption. It will also provide for comprehensive reduction in logistic cost.
It is designed by National Industrial Corridor Development Corporation Limited (NICDC), under the guidance of NITI Aayog.
Components of ULIP Platform
- Integration with existing data sources of ministries
- Data exchange with private players
- Unified document reference in the supply chain