While the 2018 National Integrated Logistics Policy could help the Government reduce the recurring losses of economy and improve capital efficiency in the following three ways :
1]It could define the blueprint for the most effective and efficient logistics infrastructure to support a balanced modal mix , based on the anticipated increase in freight flows by 2020.
2]It can ensure better coordination between multiple national and state level bodies responsible for developing logistics infrastructure.
3]It can facilitate easier access to and optimal allocation of scarce resources such as investment , equipment and people.
The present draft National Logistics Policy, which aims to promote seamless movement of goods across the country and reduce high transaction costs, was published last year and primarily focuses on generating jobs and making the country’s micro, small and medium enterprises more competitive.
India’s logistics sector has remained fragmented and unregulated, despite its centrality to economic growth. According to a logistics policy draft released by the commerce ministry in February 2019, the government will create a single point of reference for all logistics and trade facilitation matters, reducing logistics costs, which are now estimated at 13-14% of GDP, to 10%.The vision of the proposed policy is to drive economic growth and business competitiveness of the country through an integrated, seamless, efficient, reliable, green, sustainable and cost effective logistics network leveraging best in class technology, processes and skilled manpower.
Though, there is no official estimation of logistics cost for India, some private institutions have estimated the logistics cost to be 13 to 14 percent of the GDP. The proposed policy aims to reduce this to 9 -10 percent of the GDP.
In order to simplify documentation for exports and imports through digitization, Department of Revenue, CBIC have taken several initiatives like (i) SWIFT ( Single Window Interface For Trade ) (ii) Adoption of Digital Signature (iii) 24×7 Customs Clearance – for facilitated Bills of Entry and factory stuffed containers and goods exported under free Shipping Bills at select ports (iv) Import Data Processing and Management System (IDPMS) – jointly launched with RBI to facilitate efficient data processing for payment of imports and effective monitoring (v) E-Sanchit (vi) Two new IT Modules ICEDASH (Ease of doing business monitoring dashboard) and ATITHI app for electronic filing by passengers for baggage (vii) PCS 1X which is a platform for port related processes developed by Indian Ports Association.
The national logistics policy will clarify the roles of the Union government, state governments and key regulators. It will create a single-window e-logistics market and focus on the generation of employment, skills and making medium and small enterprises competitive.