Constituent policy

New logistics policy can give India $150bn boost: Piyush Goyal

NEW DELHI: The Modi government is taking decisive steps to realize the dream of making India a prosperous and developed country in 25 years. The goal of totally transforming the country with rapid and equitable growth is achievable and will be.

Components of logistics policy

The final step to accelerating India’s rise is the New Logistics Policy (NLP)

Logistics is about 5 R

Get the right product;

In good condition :

At a good place ;

At the right time, and

To the right customer.

The new policy gets the “R” right, which will help the small farmer, MSMEs, big factories and the common man. It will lubricate and speed up the engine of the economy in a way that will create millions of jobs, eliminate disparities between affluent metropolitan areas and the countryside, speed up the movement of goods and people, and create massive savings through earnings. of efficiency.

Advantages of the logistics policy

The policy will reduce logistics costs by around 13-14% of GDP to single-digit levels. The savings are huge. A five percentage point saving in a $3 trillion saving equates to efficiency gains of $150 billion, which equals the estimated value of the entire outsourcing industry in India .

The biggest winners of this premium will be smallholder farmers and many MSMEs, as the cost of transport is a much heavier burden on low value goods compared to valuable consignments like gemstones and jewellery, which can be profitable even if they are transported by air.

Traditionally, small-scale farmers have often sold fruit and vegetables at extremely low prices because perishable produce must reach the buyer before it begins to rot. With better ground defense; logistics, these goods can travel longer and faster, and therefore much further and to new markets.

This means that in the journey of agricultural products from farm to fork, the economy can change in a delightful way in which farmers get more money and the buyer gets cheaper food. The same is true, to varying degrees, for each consumer’s entire basket because the logistics cost is an important component of the price of everything produced, manufactured or built.

Synchronization between logistics and other policies

The new logistics policy aligns with other major initiatives of the Modi government, especially Prime Minister GatiShakti, the groundbreaking initiative that galvanizes infrastructure building from planning to execution with digital silos in governance. enabled systems that break down silos and provide a wealth of data and multiple layers of information.

This gives infrastructure project planners and executors vital information about:-

Forest land;

Land of Defense:

Power lines and data on several other issues well in advance, so they are not a nasty surprise that delays projects.

The policy will reduce logistics costs by around 13-14% of GDP to single-digit levels. The savings are huge. Saving five percentage points in a $3 trillion economy equals $150 billion in efficiency gains.

PM GatiShakti and the NLP also during the peak of the pandemic. illustrate Prime Minister Modi’s whole-of-government approach which is getting rid of

These policies, together with initiatives such as the construction of high-quality rural roads and highways, improved container turnaround times, faster and safer railways and dedicated freight corridors, will ensure an infrastructure world-class with world-class digital backbones to provide high quality service. as in developed countries to producers, This gives distributors of infrastructure projects and retail customers.

These policies support major initiatives to produce high-quality products, dramatically increase exports, increase global business engagement, become a global manufacturing hub, and play a much larger role in supply chains. global supplies. All these Initiatives need efficient logistics.

It is important to note that global trade and exports have been key instruments of rapid economic growth and employment. creation in countries that have become prosperous. India has adopted the strategy of using trade agreements to open up developed markets to labor intensive sectors such as gemstones and jewellery, leather and handicrafts.

Exporters have much to gain from better logistics as their goods will become more competitive and can be delivered to buyers in a faster and more predictable manner.

Logistics technology column

As observed by PM Modi, exporters need to compile shipping invoice numbers, rail consignment numbers, e-invoice numbers, etc. to track and trace the goods.

They also face multiple authorities.

To help them, the Unified Logistics Interface Platform was launched…

Also, a digital platform named Ease of Logistics Services, or eLOGS, under the logistics policy will help solve any problem they face,

Logistics in India have already improved dramatically in the game-changing eight years of the Modi government. The country could transport medicine, oxygen and food at the height of the Covid pandemic Visionary initiatives like Digital India have helped India adapt seamlessly to the demands of working from home at the height of it of the pandemic.

The infrastructure and logistics are now ready for the quantum leap needed to make India a developed country.

The new policy was announced the day the cheetahs returned to Indian soil. The arrival of the fastest animal on earth had a message for transport. “I expect you to move goods at the speed of a cheetah,” the Prime Minister said to underline his message for logistics. Based on its track record and commendable performance, India is definitely going to rush like a cheetah to become a developed country.

Source: Times of India