National Logistics Policy Sent To Cabinet For Approval, Says Official

The commerce ministry has sent the proposed National Logistics Policy, aimed at promoting seamless movement of goods across the country and reducing high transaction cost of traders, to the Union Cabinet for approval, a senior official said.

Special Secretary (Logistics) N Sivasailam said the National Logistics Policy has envisaged setting up of a central portal which will provide end-to-end logistics solutions to companies.

The portal will be a single-window market place to link all stakeholders. "The policy has been sent to the Cabinet for their approval," he told reporters.

The proposed India logistics policy will also focus on increasing warehousing capacity and identify gaps that could be bridged to bring down the cost of logistics for traders.

High logistics cost impacts the competitiveness of domestic goods in international markets. The cost of logistics in India is about 14 percent of its gross domestic product, far higher as compared to other countries. The government, with the India logistics policy, aims to reduce this to 9 percent in the coming years.

According to Sivasailam, the commerce ministry has also prepared a report—Logistics Ease Across Different States, 2019—which suggests the states to improve logistics.

Gujarat has retained the top rank on the logistics index chart, an indicator of efficiency of logistical services necessary for promoting exports and economic growth, according to the report. "Efficient logistics can significantly enhance a country's ability to trade globally," Sivasailam added.