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.