Why in the news?
- National Logistics Policy completes three years of its implementation, strengthening India’s Logistics sector.
National Logistics Policy
- What is it?:
- It is a cross‐sectoral, multi‐jurisdictional effort to transform India’s logistics ecosystem that aims to reduce costs, improve efficiency, integrate digital systems, and make India a global logistics hub.
- Launch: Launched by the Government of India in September 2022.
- Need for the Policy:
- Indian logistics costs are high: about 13-14% of GDP (some sources even 14-18%), which is significantly above international benchmarks (8-10%) for developed countries.
- Inefficiencies: delays in customs, paperwork, multimodal coordination, lack of infrastructure (warehouses, cold chains, connectivity) etc.
- India’s ranking in Logistics Performance Index (LPI) needs improvement.
- Objectives:
- Reduce logistics cost: Bring down from ~13-14% of GDP to nearer global benchmarks (~8-10%) by 2030.
- Improve LPI ranking: Join top 25 (or even top 10) countries in LPI by 2030.
- Integrated, seamless, efficient logistics network: Includes reliability, green & sustainable practices, leveraging technology, skilled manpower.
- Major Features:
- Digital Transformation / Integrated Digital System (IDS): To unify and digitize processes across the logistics value chain- tracking, documentation, interface, data sharing.
- Unified Logistics Interface Platform (ULIP): A single window/digital platform for logistics stakeholders (transporters, warehouse operators, customs etc.) to interact, access information, file clearances etc.
- Ease of Logistics (E-LOG): Making logistics operations easier: simplifying regulations, minimizing paperwork, reducing procedural delays, enhancing multimodal integration.
- System Improvement Group (SIG): An institutional framework to continuously monitor, review, and improve the logistics system- feedback loops, stakeholder involvement.
- Infrastructure & Modal Mix Improvement: Promoting multimodal transport (road, rail, waterways, ports), building multimodal logistics parks, improving warehousing, cold chain infrastructure etc.
- Green & Sustainable Logistics: Emphasis on reducing pollution, promoting environmentally friendly practices (eg, green freight, efficient last-mile connectivity).
- Human Resource Development: Skill upgradation, capacity building, aligning logistics workforce capabilities with sector needs.
- Progress So Far:
- The Unified Logistics Interface Platform (ULIP) is operational and has enabled API integration across more than 30 digital systems, facilitating huge volumes of digital transactions.
- The Logistics Data Bank (LDB) has been used to track many EXIM (export-import) containers via Inland Container Depots (ICDs) (real-time visibility). As of August 2025, more than 75 million EXIM containers have been tracked across 101 ICDs.
- Improvements in LPI and Measures of State Performance: India’s ranking in the World Bank’s Logistics Performance Index (LPI) improved from 44th in 2022 to 38th in 2023.
- Strong alignment of NLP with flagship programs like PM GatiShakti, Dedicated Freight Corridors, Multi-Modal Logistics Parks (MMLPs). These help with multimodal connectivity, reducing bottlenecks.
- The warehousing sector is growing rapidly: strong investments, modernization, adoption of better practices. Estimates say the warehousing sector may reach USD 35 billion by 2027, with ~15-16% annual growth.
- State-level measures are coming up: e.g. states like West Bengal giving industry status to logistics, approving logistics corridors, etc., encouraging private investment.
- Existing Gaps:
- Logistics Cost Reduction: Despite progress, logistics costs are still high (~13-14% of GDP) vs target benchmarks (8-10% or lower depending on estimates).
- Adoption of green logistics (EVs for freight, energy efficient warehouses, less polluting modes) is still at nascent stages. Policy proposals exist but actual large-scale implementation is limited.
- Infrastructure: The share of non-road modes (rail, waterways etc.) in freight movement needs more boost; road is still dominant, which is costlier and less efficient in many cases.
- Although digital platforms (ULIP, LDB etc.) are up, the coverage (especially in smaller states, remote ICDs, smaller firms / MSMEs) is uneven. Data quality, real-time tracking for non-EXIM / domestic logistics is less mature.
- Way Forward:
- Push for greater modal shift (from road to rail / waterways / coastal shipping) to reduce cost and carbon footprint.
- Further expansion and fine-tuning of digital systems so that domestic supply chains get similar visibility and ease of operations as EXIM ones.
- Enhance state-level implementation, including enabling regulations, incentives, and last-mile connectivity.
- Promote green logistics more vigorously: set clearer targets, provide incentives (tax/subsidy), ensure infrastructure for EVs, cold chains etc.
- Strengthen skilling in the sector: logistics workforce, tech adoption, etc.