With the National Logistics Policy (NLP) completing 2 years of its launch by Prime Minister Narendra Modi, the logistics industry maintained that it has indeed been a game changer for the sector. By streamlining processes, enhancing multimodal transportation, and creating an integrated digital platform, the NLP has significantly improved supply chain visibility and efficiency. The National Logistics Policy was introduced in September 2022 with a vision to drive economic growth and enhance the country’s business competitiveness by developing an integrated, efficient, green and sustainable logistics network with the help of technology, optimised processes and skilled workforce.
The targets of the NLP were to reduce logistics costs, improve the logistics performance index rating and to be among the top 25 countries by 2030, and to create data driven decision support mechanisms for an efficient logistics ecosystem.
Nikhil Agarwal, President, CJ Darcl Logistics Ltd, said, “As we celebrate two years of the National Logistics Policy (NLP), it’s clear that this transformative initiative is redefining India’s logistics landscape. With a vision of decreasing logistics cost from 14-18 per cent of GDP to around 8 per cent by 2030, NLP is establishing India as a global logistics hub.”
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Facilitating growth
Over the past two years, industry leaders said, the NLP has brought remarkable changes in the logistics sector. Ketan Kulkarni, Deputy Managing Director, Gati Express and Supply Chain Pvt. Limited (GESCPL), said, “The government’s focus on developing logistics parks, warehousing, and transportation networks has been crucial in connecting various modes of transport and improving infrastructure. This progress is helping reduce transit times and boosting supply chain efficiency across the country. At Allcargo Gati, we are excited about these developments and are closely aligned with the NLP’s vision for a more efficient and sustainable logistics ecosystem. Our efforts in digital transformation and sustainability reflect the policy’s goals, driving us to improve processes, build partnerships, and enhance performance.”
The initiative has helped cut costs, making Indian products more competitive worldwide, while encouraging the use of new technologies leading to faster operations. Jitendra Srivastava, CEO, Triton Logistics & Maritime Pvt Ltd, said, “The policy has encouraged the use of new tech like AI and blockchain, leading to smarter and faster operations. The NLP has significantly boosted the efficiency and sustainability of the logistics industry while cutting costs. By fostering better coordination among stakeholders and real-time data sharing, it helps streamline supply chains, reduce waste, and improve inventory management. This optimization leads to cost savings and greater efficiency. The NLP also enhances reverse logistics by encouraging third-party logistics providers (3PLs) to manage returns, recycling, and disposal more effectively.”
Additionally, NLP also supports the integration of various transport modes—road, rail, air, and waterways—creating a more efficient multi-modal network that reduces transit times and carbon emissions, thus contributing to a more sustainable logistics sector. Zaiba Sarang, Co-founder, iThink Logistics, said, “In terms of sustainability, the initiative has encouraged the adoption of green logistics practices such as electric vehicles, fuel-efficient transportation methods, and renewable energy in warehousing. These efforts are helping reduce the industry’s carbon footprint while maintaining efficiency.”
Further, the policy’s success is also reflected in the integration of key digital reforms in India including the fully operational Logistics Data Bank for tracking containerized EXIM cargo, Unified Logistics Interface Platform (ULIP), electrification of railway tracks, launch of NLP Marine for port-related logistics, and automation of weighbridges enhancing operational efficiency, transparency, and supply chain effectiveness. Infrastructure development is another cornerstone of the policy, with 35 multi-modal logistics parks planned under the Bharatmala Pariyojana.
Another major accomplishment is the implementation of the Unified Logistics Interface Platform (ULIP), offering a consolidated digital portal for logistics and trade processes. “This has boosted transparency and efficiency, reducing bottlenecks in the supply chain, said Jitendra Srivastava from Triton Logistics & Maritime Pvt Ltd.
Ketan Kulkarni from GESCPL too reiterated, “The ULIP has been a game-changer, enabling real-time data exchange and better integration of digital systems. This is helping optimize supply chain operations and ensure smoother, faster cargo movement, supported by cutting-edge technology and data.”
Raju Sinha, Chief Business Officer, Fship Logistics, said, “The push for infrastructure development under the Gati Shakti Yojna and the adoption of advanced technologies has enabled logistics providers to better manage their operations, reducing costs and delays. The Gati Shakti Yojna, in particular, has played a crucial role in improving road transportation infrastructure. This has helped logistics companies in optimizing delivery routes, resulting in faster last-mile deliveries and better service for e-commerce sellers.”
Key challenges along the way
While the industry has benefited immensely from the NLP and the initiative has played a pivotal role in transforming the logistics industry by driving efficiency, sustainability and cost reduction and also adoption of technology, there too have been key challenges and it has hit some big snags. The industry’s heavy reliance on road transport, infrastructure gaps, and the complexities of digital integration remain critical issues that need to be addressed.
“Integrating new technologies across diverse regions, addressing infrastructure gaps in rural areas, and managing regulatory bottlenecks have proven to be significant hurdles. Additionally, the need to upskill the workforce to adapt to new digital tools and automation technologies has posed a challenge,” said Zaiba Sarang from iThink Logistics.
Looking ahead, deeper policy support for sustainability and faster digitization across all tiers will further drive growth and efficiency in the logistics ecosystem, the industry voiced.
From: financialexpress
Financial News
