India’s logistics cost, which is one of the highest in the world, will be reduced to a single digit, Prime Minister Narendra Modi said on Saturday while unveiling the New Logistics Policy, the first holistic one aiming to cut cost in an estimated $200 billion sector.
The policy seeks to promote seamless movement of goods, cut cost to the industry and help in upping exports.
Logistics cost in India as a percentage of GDP is 16 per cent, which is way above China’s 10 per cent and the United States and Europe’s 8 per cent. According to the recent World Bank statistics, India is ranked 44th in logistics cost.
“The logistics cost needs to be reduced to a single digit at the earliest from 13-14 per cent. This is a low hanging fruit, we need only efficiency,” said Modi launching the policy in the national capital.
The policy also aims at integrating various mode of transport – rail, road and waterways. It will put in place accelerated development of warehousing and adoption of technology-enabled solutions.
“We are the world’s 5th largest economy. India is setting a new target for exports and we have been able to achieve those targets. India is emerging as a global manufacturing hub and the world has started recognising the fact. NLP will provide a fresh impetus to it,” the prime minister said.
The policy, which was announced in this year’s Budget by Finance Minister Nirmala Sitharaman. seeks to support faster growth by addressing supply-side constraints in the economy after two years of disruption caused by the pandemic.
Modi said the government recently liberalised the drone policy. Which will enable many possibilities in logistics. He said in the near future drones can be used to in many areas to reduce delivery time. Foe example, it can deliver fresh fish in the landlocked areas from the sea shores.
(Published 17 September 2022, 14:23 IST)
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