National Logistics Policy will be Released Soon : Sitharaman

Speed Post News Network

New Delhi : A National Logistics Policy will be released soon and it will clarify the roles of the Union Government, State Governments, and key regulators, said Finance Minister Nirmala Sitharaman. She was presenting the Union Budget 2020-21 in Parliament on February 1, 2020. The policy will create a single window e-logistics market and focus on generation of employment, skills, and make MSMEs competitive.

India’s logistics sector is highly defragmented and the aim is to reduce the logistics cost from the present 14% of GDP to less than 10% by 2022. India’s logistics sector is very complex with more than 20 government agencies, 40 PGAs, 37 export promotion councils, 500 certifications, 10,000 commodities, 160 billion market size. It also involves 12 million employment base, 200 shipping agencies, 36 logistics services, 129 ICDs, 168 CFSs, 50 IT ecosystems and banks & insurance agencies. Further, 81 authorities and 500 certificates are required for EXIM.

The Indian logistics sector provides livelihood to more than 22 million people and improving the sector will facilitate 10 % decrease in indirect logistics cost leading to the growth of 5 to 8% in exports. Further, it is estimated that the worth of Indian logistics market will be around USD 215 billion in next two years compared to about USD 160 billion at present, according to a PIB release.

The National Logistics Policy formulated by the Commerce and Industry Ministry will improve India’s trade competitiveness, create more jobs, improve India’s performance in global rankings and pave the way for India to become a logistics hub.

The following announcements in Finance Minister’s Budget Speech will make the National Logistics Policy more robust: Introduction of GST has brought in efficiency in logistics and transportation sector.  It has reduced turnaround time of trucks by over 20%; Geo-tagging of all warehousing; Warehousing shall be promoted to comply with WDRA norms; VGF shall be provided for setting up of warehousing at the block / taluk levels on PPP mode.  Food Corporation of India, Central Warehousing Corporation shall also offer their land for this purpose; Village Storage Scheme through Women Self-help groups shall provide backward linkages for seeds thereby reducing logistics costs. Financial assistance under MUDRA loans and NABARD shall be provided for this purpose; Cold chains for fish and perishables shall be promoted; Refrigerated vans shall be attached to passenger trains to promote movement of perishables quickly; Krishi trains shall also be run on PPP mode; Krishi Udan scheme shall be promoted / launched whereby horticulture and perishable commodities shall be transported through the air-route that will especially benefit the North-East region and tribal area.

Cluster approach shall be adopted for promoting horticulture.  One Product One District shall be encouraged. National Organic e-Market will be developed for organic products. Rs 100 lakh crore National Infrastructure pipeline has been launched which includes over 6,500 infrastructure projects.  National infrastructure pipeline has projects worth Rs 19.6 lakh crore