India News | National logistics policy to facilitate business activities, reduce transport costs: Industry

The National Logistics Policy, announced by Prime Minister Narendra Modi, will further improve the ease of doing business and significantly reduce transport costs, according to Indian industry.

The policy aims to address the challenges facing the transport sector and reduce logistics costs for businesses by 13-14%. Single-digit GDP in the years to come.

“Reducing logistics costs and increasing logistics efficiency will boost the economy in many sectors in many ways and take us several steps closer to becoming a global manufacturing powerhouse,” said CII CEO Chandrajit Banerjee. , in a press release.

As well as improving the ease of doing business, he said, it would help ensure faster and hassle-free movement of goods and people across different modes of transport – water, air, road, rail.

Sharing similar views, Assocham said the policy would significantly reduce transaction costs along the supply chain.

“A multi-technology policy focuses on unified measures in different logistics modes including roads, railways, ports, airports and warehouses, which will give a decisive edge in facilitating business in India”, said the chamber.

Jagannarayan Padmanabhan, Director and Head of Transport and Logistics Practice, CRISIL, said it was a holistic effort to increase efficiency in all aspects of the logistics value chain.

Over the last five fiscal years, he said, the government has invested almost Rs. 15 lakh crore in building hard infrastructure such as roads, railways, ports and airports.

“Its proper implementation and wide application will help to structurally reduce logistics costs and significantly influence the development of India’s manufacturing and service sectors,” Padmanabhan said.

Arindam Guha, government and public sector leader and partner at Deloitte, India, said the policy represents a set of ongoing initiatives to make India’s logistics sector more competitive, environmentally friendly, formalized, transparent, with shortened and predictable lead times.

He added that the main pillars of this policy include the provision of high quality logistics infrastructure, with particular emphasis on first and last mile connectivity; and using digital technologies and analytics through initiatives such as the Unified Logistics Interface Platform to match supply and demand.

“The policy is to facilitate the modal shift of logistics from the current overreliance on road (currently over 60% compared to 25% globally) to rail (currently 30%) and waterway (currently only 5% ), thereby reducing the average logistics costs, as well as the carbon footprint, he added.

It should also lead to a significant improvement in India’s ranking in global studies such as the World Bank’s Logistics Performance Index, where India was ranked 47th out of 160 countries in 2018, Guha said.

(This story has not been edited by our team of editors and was generated from the stream.)