NATIONAL LOGISTICS POLICY

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Context: The Union Government is to celebrate the first anniversary of the launch of the National Logistics Policy (NLP) on September 17, 2023.

National Logistics Policy (NLP)

About

• The National Logistics Policy (NLP) is a policy framework introduced by the Government of India to address and improve various aspects of the logistics and transportation sector in the country.
• The NLP was launched on September 17, 2022, by Prime Minister Shri Narendra Modi.
• The primary objective of the NLP is to enhance the efficiency, reliability, and cost-effectiveness of India's logistics network. It aims to reduce logistics costs, improve logistics services, promote sustainability, and leverage technology for better performance.

Vision

• The vision of the NLP is to stimulate economic growth and enhance business competitiveness in India by establishing an integrated, seamless, efficient, reliable, green, sustainable, and cost-effective logistics network.
• This vision relies on leveraging best-in-class technology, processes, and skilled manpower to reduce logistics costs and improve performance.

Targets

• Cost Reduction: The NLP seeks to diminish the overall cost of logistics operations within India, thereby enhancing the economic feasibility and competitiveness of logistics services in the country.
• LPI Ranking Improvement: One of its pivotal objectives is to elevate India's standing in the Logistics Performance Index (LPI). The aspiration is to secure a position among the top 25 countries in the world in terms of logistics performance by the year 2030, signifying heightened efficiency and effectiveness in logistics operations.
• Data-Driven Efficiency: The NLP also aims to establish a robust data-driven decision support mechanism, fostering an environment where logistics operations are guided by accurate, real-time data. This mechanism is intended to enhance the overall efficiency and effectiveness of the logistics ecosystem in India, making it more responsive and adaptive to changing demands and conditions.

Comprehensive Logistics Action Plan (CLAP)

• The Comprehensive Logistics Action Plan (CLAP) is a pivotal component of the National Logistics Policy (NLP), designed to facilitate the accomplishment of its set targets. CLAP encompasses eight crucial action areas, each playing a distinct role in enhancing the efficiency and competitiveness of India's logistics sector
• Integrated Digital Logistics Systems: This aspect focuses on the integration of digital systems and technologies across various aspects of logistics operations. It aims to create a unified and interconnected digital infrastructure for logistics, improving information sharing and management.
• Standardization of Physical Assets and Benchmarking of Service Quality Standards: Standardization is critical for ensuring consistency and quality in logistics services. CLAP works towards establishing standardized physical assets and service quality benchmarks to enhance the reliability of logistics operations.
• Logistics Human Resource Development and Capacity Building: Developing a skilled workforce in the logistics sector is essential. CLAP includes initiatives for training, capacity building, and skill development to ensure that the industry has the requisite human resources to operate efficiently.
• State Engagement: Recognizing the significance of state-level participation, CLAP encourages states and union territories to develop their logistics policies aligned with the NLP. This collaboration ensures a holistic approach to logistics development.
• EXIM Logistics: Export-Import (EXIM) logistics is a critical component of international trade. CLAP addresses infrastructure gaps, promotes last-mile connectivity to ports, and undertakes initiatives to streamline and enhance EXIM logistics.
• Services Improvement Framework: This aspect of CLAP focuses on enhancing the overall quality and efficiency of logistics services. It includes measures to improve processes, reduce bottlenecks, and enhance customer satisfaction within the logistics sector.
• Sectoral Plans for Efficient Logistics (SPEL): Different sectors have unique logistics requirements. SPEL entails the development of sector-specific action plans to ensure the seamless movement of goods across various industries and regions.
• Facilitation of Development of Logistics Parks: Logistics parks play a crucial role in streamlining the movement and storage of goods. CLAP promotes the creation of logistics parks to improve logistics infrastructure.

Progress on Implementation of NLP & CLAP

• Unified Logistics Interface Platform (ULIP): ULIP, introduced to integrate digital systems within the logistics sector, is a significant step toward enhancing digitalization. It serves as a unified platform that integrates 34 digital logistics-related systems and portals across various ministries and departments, simplifying data sharing and coordination.
• EXIM Logistics: Efforts have been made to streamline Export-Import (EXIM) logistics. These include addressing infrastructure gaps, promoting last-mile connectivity to ports, and embracing digital initiatives to improve trade facilitation.
• Human Resource Development: To nurture a skilled workforce within the logistics sector, qualification packs and training modules have been introduced. This initiative promotes the professional growth of individuals engaged in logistics-related roles.
• Sectoral Plans for Efficient Logistics (SPEL): Sector-specific plans are being developed to cater to the unique logistics requirements of various industries and regions. This approach ensures tailored solutions for different sectors, optimizing their logistical operations.
• State Engagement: State governments and union territories are actively participating by developing their State Logistics Policies aligned with the NLP. The Logistics Ease Across Different States (LEADS) index has been introduced to monitor and rank states based on their logistics performance, encouraging states to make improvements.
• Logistics Cost Framework: Recognizing the need for accurate logistics cost estimates, initiatives have been undertaken to comprehensively evaluate logistics costs. A dedicated task force, comprising experts and officials, is working on this initiative, which will contribute to better cost management within the logistics sector. 

Conclusion

• The National Logistics Policy (NLP) and its Comprehensive Logistics Action Plan (CLAP) signify a decisive commitment by the Indian government to modernize the logistics sector. These initiatives aim to enhance efficiency, reduce costs, and improve global competitiveness. With a focus on digitalization, skill development, and sustainability, India is poised to create a more robust and economically viable logistics ecosystem. The ongoing progress reflects a concerted effort to drive economic growth and elevate business competitiveness on a global scale.

Must Read Articles:

National Logistics Portal: https://www.iasgyan.in/daily-current-affairs/national-logistics-portal

National Logistics Policy: https://www.iasgyan.in/daily-current-affairs/national-logistics-policy 

PRACTICE QUESTION Q. What are the key objectives and targets outlined in India's National Logistics Policy? How has the policy contributed to improving the efficiency and competitiveness of the country's logistics sector since its launch? What challenges have emerged in its implementation, and what strategies are being employed to address them? What potential impact does the National Logistics Policy have on India's economic growth and global trade competitiveness in the coming years?

https://pib.gov.in/PressReleasePage.aspx?PRID=1957407 

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