India marks one year of launch of National Logistics Policy

Indian Economic System(BPSC) Infrastructure- Housing, Transport, Energy

Context: India recently marked one year of National Logistics Policy that was launched to complement PM GatiShakti's National Master plan.

NLP addresses the soft infrastructure and logistics sector development aspect including process reforms, improvement in logistics services, digitization, human resource development and skilling.
Vision: To drive economic growth and business competitiveness through an integrated, seamless, efficient, reliable, green, sustainable and cost-effective logistics network by leveraging technology, processes & skilled manpower.
This will reduce logistics cost and improve performance.

Reduce cost of logistics in India
Improve the Logistics Performance Index ranking (among top 25 countries by 2030)
Create data driven decision support mechanism for an efficient logistics ecosystem.

It was launched covering eight action areas including:

Integrated Digital Logistics Systems
Standardization of Physical Assets and Benchmarking of Service Quality Standards
Logistics Human Resource Development and Capacity Building
State engagement
EXIM Logistics
Services Improvement Framework
Sectoral Plans for Efficient Logistics (SPEL)
Facilitation of Development of Logistics Parks

Regional conferences, one-on-one interactions, and inter-Ministerial meetings under DPIIT (Department for Promotion of Industry and Internal Trade) facilitated its implementation.
Inter-Ministerial meeting: To review progress and take measures to improve logistics efficiency in the country by participation of infrastructure and user Ministries.
Regional Workshops: To discuss key features and progress of NLP in participating States/UTs with highlights of respective State Logistics Policy and other interventions.

Logistics Performance Index (LPI) meeting: To apprise World Bank team about initiatives and reforms of the Government and draw attention for greater emphasis on objective based methodology for LPI scoring, dedicated Unit for implementation of action plan to improve performance on LPI parameters.
Services Improvement Group (SIG) meetings: Based on approved institutional mechanism for the NLP, it was constituted to facilitate speedy resolution of logistics services and processes related issues of the industry, in a coordinated manner.
It would promote inter-operability, eliminate fragmentation in documentation, formats, processes, liability regimes and reduce gaps in regulatory architecture.
E-LoGs portal: digital system for registering logistics related issues by logistics sector associations.

ULIP is an indigenous data-based platform which integrates 34 logistics-related digital systems /portals across Ministries & Departments, GST data is integrated with ULIP.
Purpose: For digital integration in logistics sector and to provide single sign to users who trade goods and using multiple modes of transport.
It gives opportunities to private sector to develop use cases on ULIP by signing Non-Disclosure Agreements (NDAs) to access data through API integration.

Measures were taken to promote trade facilitation and streamline EXIM logistics by EXIM Logistics Group.
Infrastructure gaps were addressed and digital initiatives under National Committee on Trade Facilitation.
A Comprehensive port connectivity plan was developed by Ministry of Ports, shipping and waterways, to address last and first mile infrastructure gaps and promote seamless movement of goods to ports.
To improve port productivity and address issues, several meetings have been held with MOPSW, port authorities, etc.
Port Processes studies conducted at 3 Major Ports (Chennai, JNPT and Vishakhapatnam);
Logistics Data Bank (LDB): An application that tracks & traces EXIM cargo for greater predictability, transparency and reliability, logistics cost and wastages in supply chain will be reduced.

Government notified qualification packs for different job roles in the sector to promote professionals.
Syllabus and training modules was developed for training and capacity building in logistics and infrastructure.
Sectoral Plan for Efficient Logistics (SPEL): To address sector-specific needs in logistics sector and streamline movement of bulk and break-bulk cargo in the country.
These include sector specific action plans /interventions necessary for seamless movement of goods across different origin-destination pairs.
Comprehensive Port Connectivity Plan (CPCP): To bridge last mile gaps to ports, has been developed by Ministry of Port, Shipping and Waterways by 107 Port connectivity projects.
Logistics Plan: For efficient coal evacuation developed by Ministry of Coal.
Sectoral Plan: by Ministry of Steel.

State Logistics Policy: To bring holistic focus on ‘logistics’ in public policy at State level (22 states), develop State Logistics Plans (SLPs) aligned with NLP.
Logistics Ease Across Different States (LEADS): An indigenous logistics performance index on lines of the World Bank’s LPI, for logistics performance monitoring across states.
Objective: To identify areas of improvement and support State Governments to undertake adequate infrastructure, services and regulatory reforms to improve logistics performance.
Logistics Cost Framework: To estimate Logistics cost that vary from 8-14% of GDP (Gross domestic product) based on holistic data and relevant statistical models.

Task Force with members including Senior Officials from concerned Ministries and experts from academia, industry and think tanks, were set up.
Baseline estimates for logistics cost achieved (Ministry of statistics Supply Use Tables) using secondary data available in public domain.
A long-term survey-based framework for logistics cost calculation developed.
Data limitations like public domain data aggregated estimates of transportation cost were used as a baseline for comprehensive trend analysis in future.
This will help achieving robust logistics cost estimates at a disaggregated level so that targeted interventions across sectors can be undertaken.