AIR Spotlight is an insightful program featured daily on the All India Radio Newsonair. In this program, many eminent panellists discuss issues of importance which can be quite helpful in IAS exam preparation. This article is about logistics in India.
Participants:
- Sharad Kohli, Economic Analyst
- Sonu Sood, AIR Correspondent
Context:
- The Indian Prime Minister rolled out the National Logistics Policy recently. This is a significant step in the direction of India becoming a developed country.
Significance of logistics in the economic landscape:
- An efficient and cost-effective logistics system is indispensable for the transition of India from a developing economy to a developed economy. Such a logistics system will not only result in a vibrant local economy but will also make Indian goods competitive in the extremely price-sensitive international market.
Steps being taken in India to improve logistics:
- Improving physical infrastructure through initiatives like Pradhan Mantri Gati Shakti Yojana, Bharatmala and Sagarmala yojana, dedicated freight corridor, waterways development and multi-modal transport hubs among others.
- Use of digital technology in the logistics segment.
- ULIP – United Logistics Interface Platform to act as a single portal to sort out all doubts and compliances with respect to the logistics sector.
- Improved coordination among the states in improving inter-state transportation of goods.
- Improving storage and warehousing facilities.
- Ease of doing business reforms in the import and export segment.
- E-LOGS – Ease of logistics services. The industry sector associations can coordinate among themselves to communicate effectively with the government.
- E-Sanchit – Paperless import and export process. Faceless assessment system in customs segment.
- States coming up with their own logistics policy.
Objectives of the National Logistics Policy:
- To reduce the cost of logistics.
- The logistics cost in India amounts to around 13-15 %. This is high compared to other developed economies wherein the logistics cost amounts to around 8-10%.
- To ensure seamless movement of goods to bring down the time involved in transporting goods. The main objective is to have a time-bound movement of goods.
- Introduces an integrated digital system to integrate digital data of different related departments. This will facilitate a unified regulatory environment and policy across the country and the administration.
Read previous AIR Spotlight articles in the link.
AIR Spotlight: National Logistics Policy:- Download PDF Here
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