Driving India’s Growth: The Critical Role of Logistics

Logistics is essential to any economy, and India is no exception. With a population of over 1.3 billion people and a fast-growing economy, India’s logistics sector plays a crucial role in supporting the country’s overall growth and development.

India’s Prime Minister Narendra Modi announced the ‘National Logistics Policy 2022’ with the intention of achieving easy movement of logistics as well as giving a boost to the Indian economy’s trade sector.

The logistics sector in India encompasses the transportation, warehousing and distribution of goods and services. It plays a vital role in facilitating the movement of goods from one place to another, ensuring that products are delivered on time and in good condition. The sector is responsible for the efficient movement of raw materials, finished goods and other products, and it also plays a key role in connecting producers and consumers across the country.

However, there are a few key challenges faced by the Indian logistics sector, such as the hassle of documentation or paperwork and 14% logistical costs. The Indian government has been working on the strategy for three years in order to address the key concerns of institutions and players in the logistics industry.

Some main highlights of the policy are:

🔽 Bringing down the logistics cost to 8% from 16% of the GDP in the next 5 years.

🛣️ A roadmap will be created to explore more options in logistics, such as railways, shipping and air transport, to reduce the country’s dependence on road transport for cargo.

🏗️ The government also plans to build logistics parks at strategic locations.

Digital transformation is also being focused on in the logistics sector. Some of its features are:

🔧 Integration Of Digital System (IDS):
Under this department, road transport, railways, customs and aviation data will be brought together on a single platform.

🔧Unified Logistics Interface Platform (ULIP):
This department will bring all the possible digital services into one portal.

🔧 Ease of Logistics (ELOGS):
All the industry associations can use the platform to reach out to the government.

Associations involved in the Indian logistics sector can track all the movements in real-time, access all documents digitally and reduce costs. The policy intends to remove the logistics sector’s hindrances and inefficiencies by introducing digital transformation. It will promote a cost-efficient and trusted logistics ecosystem for rapid growth.

Logistics companies are now trying their best to navigate the market and increase their capacities to full throttle.