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National Logistics Policy (NLP)
In an effort to improve the business environment and quality of life, Prime Minister Narendra Modi unveiled the National Logistics Policy (NLP) on September 17, 2022, at Vigyan Bhawan, New Delhi. The primary objective of this policy is to reduce the current logistics costs of 13-14percent to be on par with developed nations, thereby enhancing the competitiveness of Indian products both domestically and internationally. The subsequent reduction in costs will lead to increased efficiency across all sectors of the economy, promoting value addition and entrepreneurship.
The National Logistics Policy marks a significant advancement in various sectors. Prior to implementing any policy, India meticulously lays the groundwork to ensure successful execution.
The development of the NLP took eight years due to rigorous planning and decision-making aimed at improving last-mile delivery, resolving transportation issues, saving time and money for manufacturers, and averting wastage of agricultural products. Enhancements in coordination will accelerate sectoral growth, value creation, and entrepreneurial endeavors.
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This policy serves as a comprehensive solution to address cost and efficiency challenges by establishing a broad interdisciplinary, cross-sectoral, and multi-jurisdictional framework for the entire logistics system. Its overarching objective is to enhance the efficiency and reduce costs of the logistics industry, ultimately driving economic growth, job creation, and enhancing the global competitiveness of Indian products.
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The Prime Minister's vision is to develop world-class infrastructure by engaging all relevant stakeholders in a holistic planning and execution process, fostering greater efficiency and synergy during project implementation. Logistics plays a critical role in India's international trade by facilitating the diversification of exports and manufactured products.
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The NLP endeavors to facilitate the smooth movement of goods, enhance the competitiveness of Indian industries, and decrease logistics costs from 16percent of GDP to the global average of 8percent by 2030. Estimates suggest that the Indian logistics market will reach around $215 billion in the next two years, up from $160 billion, with a forecasted growth rate of 10.5percent through 2025. This sector currently employs over 22 million individuals in India, a number expected to increase by 5percent through skill development initiatives over the next five years.