June 28, 2019

Union Minister of Commerce and Industry reviewed the draft National Logistics Policy and the proposed action plan for implementation of the policy.

Background: View of the Economic Survey 2017-18

  • India’s logistics sector is highly defragmented and complex with involvement of more than 20 government agencies, 40 PGAs, 37 export promotion councils, 200 shipping agencies and 36 logistic services.

  • The Indian logistics sector provides livelihood to more than 22 million people and improving the sector will facilitate 10 % decrease in indirect logistics cost leading to the growth of 5-8% in exports.

  • The worth of Indian logistics market would be around USD 215 billion in next two years compared to about USD 160 billion currently.

The draft National Logistics Policy:

  • It has been prepared by the Department of Logistics, Ministry of Commerce and Industry in consultation with the Ministries of Railways, Road Transport and Highways, Shipping and Civil Aviation.

  • Aim is to reduce the logistics cost from the present 14% of GDP to less than 10% by 2022.

Source : PIB