Initiatives to bring down logistics costs

Logistics relates to the method of controlling how resources are obtained from the primary location, housed and delivered to their ultimate location. Logistics is considered as the backbone of an economy. In India, the Logistic sector is estimated to account for about 14.4 % of GDP.

Incidentally, logistics cost is high in India. According to experts the logistic cost in India is between 13 and 14 % of the GDP, which is very high. Developed countries like Germany and Japan, known for their highly developed infrastructure and systems for logistics, spend just about 8 % to 9 % of their GDP on logistics.

The Logistics industry is fragmented owing to the presence of numerous unorganized players. In keeping with PM Narendra Modi’s vision of India becoming a $5 trillion economy by 2026-27. New Logistics Policy (NLP) was rolled out. The new framework comes with an emphasis on streamlining processes for seamless coordination, and reduction in overall logistics cost, besides pushing employment generation and skilling of the workforce and the aim should be to bring down the logistics cost to single – digit to become globally competitive.

PM Gati-Shakti National Master Plan (PMGS-NMP) Launched in 2021 is a transformative approach for economic growth and sustainable development.

PM Gati-Shakti National Master Plan (PMGS-NMP):- It brings 16 ministries including Railways and Roadways together for integrated planning and coordinated implantation of infrastructure connectivity projects to facilitate economic transformation seamless multimodal connectivity and logistics efficiency. The main of aim of PM Gatishakti initiative is to connect whole logistics sector through multimodal connectivity.

Role or Railways:- Railways is one of the important partners of Logistics industry, providing transportation at a cheap cost. During 2020-2021, when most activities were under lockdown due to the corona virus pandemic. Indian Railways was there providing relentless services in freight transportation.

The waterway:- Growth of the Port sector is related to the growth in GDP. Ministry of Ports, Shipping & Waterways prepared ‘Maritime India Vision 2023’ (MIV 2030) to strengthen India’s position of eminence in the global maritime sector. MIV 2030 indentifies over 150 initiatives across various maritime sub-sectors like ports, shipping end waterways. It gives priority or Port led development.