Ministry of Commerce, headed by Piyush Goyal, has sent the proposed National Logistics Policy to the Cabinet for approval, confirmed a senior official to the media.
The draft policy is primarily aimed at reducing the logistics cost which currently sits at 14% of GDP and is expected to be a major gamechanger to the overall sector.
Other objectives of the draft policy include creating a national logistics e-marketplace as a one-stop marketplace for exporters and importers, set up a separate fund for start-ups in the logistics sector and to double employment in the sector.
To ensure that this policy is in favour of the logistics community, the Centre had also invited suggestions from stakeholders to create a holistic and inclusive policy. “We have incorporated most of the comments and suggestions made by the stakeholders,” special secretary (Logistics) N Sivasailam said during a CII event earlier this year.
The proposed national logistics policy will also focus on increasing warehousing capacity as well as identify gaps and bottlenecks that could be eliminated in order to bring down the logistics cost for traders.
During a recent interaction with Logistics Insider, the special secretary (Logistics) touched upon how the policy, through effective implementation, could provide an impetus to trade, enhance export competitiveness, improve India’s ranking in the Logistics Performance Index as well as reduce losses due to agri-wastage.
Sivasailam also told the media that the ministry has prepared a special report — LEADS (Logistics Ease Across Different States) 2019 — which suggests the states to improve logistics. This report, prepared in consultation with Deloitte, focuses on indicators such as infrastructure, services, timeliness, traceability, competitiveness, security, operating environment and efficiency of regulation.