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. The policy will create a single-window e-logistics market and focus on the generation of employment.
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 SWIFT ( Single Window Interface For Trade )
- Adoption of Digital Signature
- 24×7 Customs Clearance – for facilitated Bills of Entry and factory stuffed containers and goods exported under free Shipping Bills at select ports
- Import Data Processing and Management System (IDPMS) – jointly launched with RBI to facilitate efficient data processing for payment of imports and effective monitoring
- Two new IT Modules ICEDASH (Ease of doing business monitoring dashboard) and ATITHI app for electronic filing by passengers for baggage
- PCS 1X which is a platform for port related processes developed by Indian Ports Association.
The Draft National Logistics Policy
The Draft National Logistics Policy was published by the Ministry of Commerce – Logistics division on 5th Feb 2019, seeking suggestions and comments from various stakeholders which can be examined and reviewed prior finalization of the policy.
The relatively high cost of logistics in India and its effects on the facilitation of domestic and foreign trade has been discussed and debated for a long time now. The present policy has been brought out, accordingly, to address holistically the various challenges beleaguering smooth cargo movement and causing additional costs for Importers and Exporters.
Key Objectives Of The Policy
- Create a single point of reference for all logistics and trade facilitation matters
- Driving logistics cost as a percentile of GDP from current levels (13-14 per cent) to an estimated 10 per cent to align cost with best in class international standards
- Creation of national logistics e-marketplace as a one-stop marketplace
- Creation of data and analytics center to drive transparency and continuous monitoring of key performance metrics
- Enhance efficiency of logistics value chain through increased digitization and technology adoption
- Encourage Industry, Academia, and Governments to create a Logistics Centre of Excellence to drive innovation in the logistics sector
- Creating and managing on an ongoing basis, an Integrated National Logistics Action Plan that is composed of the logistics plans of various stakeholders (like the various modes of transport, customs, ports, respective State Governments) and State Logistics Plans for aligning the National logistics action plan with the priorities of the country and the states concurrently
- Doubling employment and skill development in the logistics sector
- Improve India’s ranking in Logistics Performance Index to between 25 and 30 (from 44 in 2018)
- Strengthening the warehousing sector by improving the quality of storage infrastructure
- Reduce losses due to Agri wastage to less than 5 per cent by improving cold chain logistics solutions, improvement of packaging conditions and other post-harvest management techniques
- Promote cross-regional trade on e-commerce platforms to enable a seamless flow of goods
- Encourage adoption of green logistics in the country
The policy will improve India’s trade competitiveness, and performance in global rankings, and pave the way for India to become a logistics hub