New Delhi, September 17: Prime Minister Narendra Modi launched the National Logistics Policy in the national capital on Saturday, calling it a significant step toward "making of a developed India," while adding that the policy has brought "new energy for every sector."
The Prime Minister, in his address, said: "In the Amrit Kaal, the country has taken an important step towards the making of a developed India. The echo of Make in India and India becoming self-reliant is everywhere. India is setting big export targets and is also fulfilling them. India is emerging as a manufacturing hub. In such a situation, the National Logistics Policy has brought new energy for all sectors."
"India is emerging as a manufacturing hub. The world has accepted India as a leader in manufacturing. The National Logistics Policy has helped the manufacturing sector," he stated.
The Prime Minister further described the policy as a solution to many problems and stated that it will improve "all of our systems."
"There has been a constant effort to find solutions for fast last-mile delivery, resolution of transportation-related challenges, for saving time and money of our manufacturers and industries, all these subjects. The national logistics policy is a form of its solution. I believe that for the improvement of all our systems, there will be coordination between various units of the government working in these fields with a holistic approach. It will result in the delivery of the speed that we want to achieve," he added.
The logistics policy aims to reduce logistic costs while increasing the competitiveness of domestic goods in the global market.
Logistics costs account for around 13 to 14 percent of India's GDP. While countries like Germany and Japan are known for their developed logistics infrastructure and systems, they only spend about 8% to 9% of their GDP on logistics costs.
The logistic sector has over 20 government agencies, 40 Partner Government Agencies (PGA), 37 export promotion councils, 500 certifications, more than 10,000 commodities and a USD 160-billion market.
According to the World Bank Logistics Index 2018, India ranks 44th in logistics costs, trailing countries such as the United States and China, which rank 14th and 26th, respectively.