Is the National Logistic Policy a step in the right direction toward a well-integrated, efficient freight system?

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Transport, inventory, warehouse is the fundamental components of logistics. For the industrial sector, logistics concerns the efficient transfer of goods from the source of supply through the place of manufacture to the point of consumption in a cost-effective way while providing an acceptable service to the customer. On September 17, 2022, the government of India announced the National Logistics Policy, which aims to ease the movement of goods and boost the trade sector in India's economy. The cost of logistics and supply chain in India is about 14% of the GDP as of FY 2022.
The main targets of this policy are
Reduction in the logistic cost in India as comparable to global benchmark by FY 2030
To rank among the top 25 countries in the Logistic Performance Index (LPI) by FY 2030.
A mechanism that is data-driven for an efficient logistic system
The LPI was published by the World Bank in 2018, in which Germany was at the top of the list with a score of 4.2 out of 5, and India was in 44th position with a score of 3.18 out of 5 across 167 countries. The logistic performance shows the health of the logistics of any country while considering customs, infrastructure, international shipments, logistics quality & competence, tracking & tracing, and timeliness. On October 13th, 2021, PM Gatishakti National Master Plan (NMP) was launched for multi-model connectivity to integrate 16 ministries together into a digital platform that includes railways and Roadways together. From CY 2020–21 to CY 2021–22, Indian Railways registered a 15% growth in loading cargo, from 1233.22 million tonnes to 1418.27 million tonnes respectively. TCI Express (TCIE), Transport Corporation of India (TCI), VRL Logistics (VRL), Blue Dart Express (BDE), Mahindra Logistics Limited (MLL), and Container Corporation of India (CCRI) are major players in the Indian logistics market. India transports over 64.5% of goods with road infrastructure, and the rapid growth in construction is taking India to the world's second largest roads, with 5.89 million km as of FY 2022. The progress in transportation is on a hike in India, which gives a rapid growth in logistics and makes the NLP scheme successful. However, the government has to put more focus on warehouses and inventory with a focus on transportation and remove bureaucracy to improve logistics as fast as possible. national_logisitics_policy.jpg

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