LOGISTICS SECTOR OF INDIA -

The major components of logistics are:

Procurement of materials from outside suppliers, including negotiation, order placement, inbound transportation etc.
Material handling in such a way that the warehouse can process orders efficiently.
Warehousing, packaging and inventory control of finished goods until they are sold.
Transportation i.e., physical delivery of goods from the organisation to the distributor or dealer and from the dealer to the end customer.

Steps Taken for Improvement of Logistic Sector in India

National Logistics Policy (NLP) 2022: It addresses the soft infrastructure and logistics sector development aspect.

It includes process reforms, improvement in logistics services, digitization, human resource development and skilling.
It was launched in 2022 to complement PM Gati Shakti National Master Plan (NMP).
- PM Gati Shakti NMP addresses integrated development of the fixed infrastructure and network planning.
The targets of the NLP are to:
- Reduce cost of logistics in India – Comparable to global benchmarks of 8-9% of GDP.
- Improve the Logistics Performance Index ranking – endeavour is to be among top 25 countries by 2030.
- Create data-driven decision support mechanism for an efficient logistics ecosystem.
Comprehensive Logistics Action Plan (CLAP) as part of the NLP was launched covering eight action areas including Integrated Digital Logistics Systems, Services Improvement Framework etc.

Other Steps Taken

Unified Logistics Interface Platform (ULIP) It is an indigenous data-based platform which integrates 34 logistics-related digital systems /portals across Ministries / Departments.
Logistics given infrastructure status: It enabled the logistics sector to access infra-lending at easier terms.
Logistics Ease Across Different States (LEADS): An indigenous logistics performance index on lines of the World Bank’s LPI for logistics performance monitoring across states.
- The survey is conducted annually and States are ranked according to their performance.
Multimodal Logistics Parks (MMLPs): They will act as freight aggregation and distribution hubs, and enable long-haul freight movement to reduce transport costs.
- Government has planned 35 MMLPs with an investment outlay of $6.2 Billion.
Bharatmala Pariyojana: About 65,000 km of National Highways are to be constructed in two phases under the program.
Dedicated Freight Corridors (DFC): To assist in achieving the target mandated under the National Rail Plan 2030 of increasing the share of rail freight traffic from 27% (2019) to 45% (2030).
Sagarmala and Inland waterways: It is a flagship programme of the government to promote port-led development in the country through harnessing India’s 7,500 km long coastline and 14,500 km of potentially navigable waterways.

Logistic Performance Index (LPI) Report for 2023:

The report is released by the World Bank.
India’s performance: Ranks 38 out of 139 countries in 2023
- Improved by 6 places from its rank of 44 in 2018

The LPI is based on six parameters:

LOGISTICS SECTOR OF INDIA