National Logistics Policy: Everything You Must Know

The logistics industry would be a major game-changer that would help India become a $5 trillion economy. The real significance of the logistics business, which is considered the backbone of the economy, was seen even more vividly during the nationwide lockdown imposed last March due to the COVID-19 outbreak. According to statistics reports, currently, the cost of logistics and supply chain in India is over 13-14 percent of GDP, compared to the global average of 8 percent.

To empower the logistics sector in India, the government is also planning massive plans and policies. The National Logistics Policy (NLP) intends to simplify and grow India's logistics industry, encourage the seamless movement of products across the country, and aim to make business simpler for enterprises in the field.

According to a report from the Ministry of Commerce and Business, the plan, which is nearing completion, together with other initiatives taken by the government for the industry, would effectively allow "greater collaboration with the logistics division."

Why Do We Need a Holistic Logistics Policy?

Despite the completion of several megaprojects, the logistics industry remains fragmented and unorganized. One of the major hurdles to its expansion is a considerable lack of infrastructure.

Even today, organized logistics service providers are primarily limited to metros or special economic zones, leaving behind micro, small, and medium enterprises (MSMEs) and agri-based industries. This sectoral inequality drives up expenses and reduces efficiency.

A diverse and silo-based regulatory compliance paradigm, interconnected IT systems, limited warehouse facilities, and labour scarcity are other key factors driving price increases. Our supply networks are off the pace with our industry's ever-increasing needs due to a lack of national policy.

NLP Brings New Capabilities: A Glimpse Through Strategies

Coordination and implementation of NLP drive growth and new capabilities. It is critical to strengthen national capacities through developing human resources in logistics by improving labour and logistical services skills. Now let’s flip through some of the most popular strategies:

Workplace training and certification

A significant source of worry in the logistics business is the labour shortage, both in terms of numbers and qualifications. The purpose is to promote logistics as a career path and to improve labour capacities through various technical training schemes that correspond to the industry demands. This labour pool should address anticipated demand as well as credentials recognised by the business, particularly at the worldwide level. The increase in labour productivity and skills is likely to generate incentives for logistics enterprises to relocate. The danger in the labour market, as usual, is not being able to deliver the requisite workforce, particularly in terms of skills.

Research Centres

The advancement of research capabilities to address supply chain challenges is an important milestone that augmented national logistics policies. It helps identify trends, gaps, and opportunities in the sector and better inform the stakeholders. The availability of researchers, consultants, and managers would be able to provide logistical innovations suitable for the national market.

Logistics Incubators

Focuses on the growth of small and medium-sized logistics enterprises by capitalising on possibilities that the market is sluggish to deliver. This is often accomplished through the development of entrepreneurial qualities, particularly for new enterprises, as well as access to technology and investment funds. The supply of specialist logistics services, such as 3PLs and 4PLs, is likely to grow, improving the competitiveness of the national logistics industry.

National Logistics Policy: The Future of Logistics

An efficient logistics strategy is crucial to breaking the silo mentality and leaping ahead. It will open a new ray of hope for budding entrepreneurs and small-scale businesses in the post-pandemic era. It's time to focus on these innovations to develop a silo-less logistics ecosystem.