Recently, Prime Minister Narendra Modi unveiled the National Logistics Policy. While announcing the new policy, he said that this is an important step towards the making of a developed India, and added that the policy has come with a new energy for every sector.



  • Recently, Prime Minister Narendra Modi unveiled the National Logistics Policy.
  • Speaking on the occasion, the Prime Minister called the launch of the National Logistics Policy a significant step in fulfilling the ‘Pran’ of India being a developed country.
  • The Prime Minister noted that in India, which has become the 5th largest economy in the world, things are changing rapidly.
  • The Prime Minister underlined that for the products manufactured in India to dominate the world market, it is crucial to have a strong support system.


Logistics market in India

  • Logistics is the process of planning and executing the efficient transportation and storage of goods from the point of origin to the point of consumption.
  • The goal of logistics is to meet customer requirements in a timely, cost-effective manner. The worth of Indian logistics market is estimated at over USD 200 billion.
  • The sector provides livelihood to more than 22 million people.


What is the need of a logistics policy?

  • The need for a national logistics policy was felt since the logistics cost in India is high as compared to other developed economies.
  • It is imperative to reduce the logistics cost in India for improving the competitiveness of Indian goods both in domestic as well as export markets.
  • The difference between the logistic cost to GDP, in India at 14 per cent and in the developed countries at 8 per cent, is very significant.
  • Reduced logistics cost improves efficiency cutting across various sectors of the economy, encouraging value addition and enterprise.


About the ‘National Logistics Policy’

  • The policy had found mention for the first time in the Union Budget of 2020-21.
  • Objective — To facilitate a seamless flow of goods across India.
  • Benefits –
    • With the implementation of National Logistics Policy, there will be further boost to the development in an integrated logistics ecosystem, reduction in time, wastage & cost, and ensuring sustainability.
    • It will further strengthen the warehousing sector by – improving the quality of storage infrastructure, including specialised warehouses, and increasing warehousing capacity by identifying areas of standardisation and optimisation.
    • The national logistics policy will ensure great synergy between various Central government departments, agencies, and private players.
    • In coordination with the states, it will also ensure the issues that inflate logistics costs are swiftly resolved.


Other measures taken by government to improve logistics in India

  • Many efforts have been taken in recent years in regards to improve logistics in India.
  • For instance, the government had introduced PM GATI Shakti Master Plan in 2021.
    • Under the plan, a digital platform is created to bring 16 Ministries including Railways and Roadways together for integrated planning and coordinated implementation of infrastructure connectivity projects.
  • The government has also approved the development of 35 New Multi-Modal logistics Parks under Bharat Mala Pariyojana to reduce logistics cost.
  • For promoting export, 40 air cargo terminals have been constructed. 30 airports have been provided cold-storage facilities.