As NLP is launched, Anurag Jain reveals Government’s plans to reduce logistics cost

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Soon after the Prime Minister Narendra Modi revealed the National Logistics Policy (NLP), the Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Anurag Jain gave a statement that the Government of India has set the goal of reducing the logistics cost by atleast 5 points i.e. from 13-14 percent of GDP to 8-9 percent of GDP by the year 2030.

The National Logistics Policy identifies its main targets as quick last-mile delivery, end of transport-related challenges, saving time and money of manufacturers, and prevent wastage of agro products.

Today it is believed that our logistic cost is around 13-14 per cent of GDP, but the global standard is around 8-9 per cent. So there is chance of improvement and we are aiming it to bring it down by 5-6 percentage points by the year 2030. We are aiming to reach to the global benchmark. India is working hard on Infrastructure.

Anurag Jain, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), Government of India

He also mentioned that the critical infrastructural gaps have been already identified and the Network Planning Group (NPG) are coordinating with the concerned ministries in order to arrive at their respective resolutions. Mr. Jain further said that various ministries, including telecom, railways, road transport, and food & public distribution, have started using the platform for infrastructure planning and decision making.

The National Logistics Policy (NLP) was announced initially by the Finance Minister Nirmala Sitharaman during the Budget 2020 and earlier this year while announcing Budget 2022 she said that it was to be unveiled soon. Narendra Modi, on 17th September launched the Policy in New Delhi.

The NLP is being said to have been made after extensive stakeholder consultation and its implementation will lead to reduced logistics cost, international trade will increase, thereby, increasing prosperity and promoting startups, among other benefits, eventually making India ‘atmanirbhar‘. It will make Indian logistics sector at par with global benchmarks.