National Logistics Policy, 2020

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 digitisation, Department of Revenue, CBIC have taken several initiatives like

(i) SWIFT ( Single Window Interface For Trade )

(ii) Adoption of Digital Signature

(iii) 24x7 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.


Post Pandemic Spurt in Logistics

In 2020, the government said India’s logistics sector remains complex, with more than 20 government agencies, 37 export promotion councils, 500 certifications, 129 inland container depots and 50 IT ecosystems and banks and insurance agencies.

Consumer behaviour in India witnessed a monumental transformation in 2020 with the wide scale adoption of ecommerce. With over 700 million internet users across the country, there was an exponential migration towards ecommerce websites due to the nationwide lockdown. This sudden shift in consumer behaviour led to a surge in warehousing and logistics opportunities.

The ubiquitous adoption of ecommerce both accelerated and decentralised the demand for warehousing and logistics facilities in previously under-serviced locations. The warehousing segment thus remained a strong investment class amid the pandemic, despite supply chain disruptions. This trend will continue as the government has proposed greater investments in supply chain infrastructure with the National Logistics Policy.


National Logistics Efficiency and Advancement Predictability and Safety Act (NLEAPS)

To help alleviate the inefficiencies, the Ministry of Commerce and Industry is considering replacing the Multimodal Transportation of Goods Act, 1993 (MMTG) with a National Logistics Efficiency and Advancement Predictability and Safety Act (NLEAPS).

The Policy will facilitate in creating a point of reference for all matters relating to logistics and trade which will also function as an information and knowledge sharing platform. It will also entail the formulation of a data and analytics centre to create transparency and continuous motoring of key logistics metrics. The Policy at the same time will also provide impetus to trade, and focus on economic growth which will lead in competitiveness of imports and exports and double the employment in the logistics sector by generating additional 10-15 million jobs and target on improving skills in the sector and encourage gender diversity. Efficient and practical implementation of the Policy would help provide an impulse to consistent trade border facilitation, and improve India’s ranking in the Logistics Performance Index and boost investments. The Logistics value chain is being managed currently by many ministries, including road transport and highways, shipping, railways, civil aviation. Agencies like Central Drug Standard Control Organization, Food Safety and Standard Authority of India are some agencies providing relevant trade clearances. The Policy seeks to call for cooperation between various ministries, and have an integration on the central level.


Smart Enforcement App

The government has launched an IT-based smart enforcement app for implementation of rules and regulations related to road-based violations by trucks, a move aimed at reducing transportation and logistics cost of the industry. The app would help in decreasing the number of physical checks of commercial vehicles by enforcement officers; reduction in the number of cash challan by issuing e-challan; and higher revenue collection due to reduced human intervention.

One of the key reasons is delays due to random stoppages for physical checking of vehicles and verification of documents etc. It said that while GST (goods and services tax) has helped improve the situation, there is a long way to go to reach the advanced country levels.

"Based on a risk matrix that uses historical patterns, the app assigns a risk profile to the truck helping the officers decide whether to stop it for further scrutiny. It requires the officer to issue all fines, penalties, or any other punitive measure through the app, ensuring transparency."

By using the integrated smart solution, data related to goods being carried on a truck would be fetched from the existing Goods and Services Tax Network (GSTN) and VAHAN databases and this data would be available to enforcement officers on the road in advance for approaching trucks.

The application would have the ability to integrate with all the sensors, Weigh in Motion, and cameras available with the state government or National Highway Authority to allow remote enforcement.

This would significantly reduce the need to deploy officers on the ground since the app would be able to alert officers whenever a vehicle is in violation.

Section - 5

We have reimagined the ways how the process of new age policy making would be.

Over the last decade, the government has taken a more professional approach to policy making.There has been a movement away from policy advice by generalists to one informed by concepts of risk, management, and delivery of services.

Our approach to policy advisory incorporates the perspectives of ministers as well as civil servants, since policy is the responsibility of both parties, and a product of their joint efforts. Bureaucrats, members of standing committees, joint parliamentary committees and opinion leaders can be persuaded to take a more proactive and participatory role in the emerging grey areas in policy dialogues.
Back To Top