Logistic is a supply network management between points of production, consumption, storage, value addition and allied services. The chain begins with the producers of the raw materials and end when the van delivers the finished product to the end user. Logistics is the backbone of country’s economy. It determines the domestic and international trade in any economy and is a critical factor for competitiveness. Logistic sector accounts for 13 to 14% of India’s GDP, almost double of what the costs are in developed countries. For easing the movement of goods, boosting the trade sector in the Indian economy and reducing the Logistic cost, National Logistic Policy was introduced by our Prime Minister Mr. Narendra Modi on 17th September 2022.
The visions of the National Logistic Policy are:
- Reduce cost of logistics in India and making India comparable to global benchmarks by 2030.
- Improve the Logistics Performance Index ranking and India endeavours to be among top 25 countries by 2030.
- Create data driven decision support mechanism for an efficient logistics ecosystem.
For achieving the vision the government is working on following aspects:
- Re-engineering: A software engineering that involves changing the way physical work is done in the “real world” as well as creating the software required to support the altered work patterns.
- Digitisation: Transforming information from a physical format to a digital version will enhance operations efficiency and automate the day-to-day activities. The government is integrating 30 different systems of seven different departments digitally including the road transport, railway, customs, aviation, foreign trade and commerce ministries.
- Multi-modal transport: Combination of several transportation methods save time, is Cost effective and Faster Transport.
- Rules and Regulation: A new policy will be implemented to simplify the rules and ease the Logistic business.
- Introduction of SIG (System Improvement Group): A cell shall be monitoring all logistics-related projects regularly and tackling all obstacles.
- Generating Employment: The policy aim to develop skills among youth and create employment opportunities.
Working on all the aspects shall result in improving the competitiveness of Indian goods both in domestic as well as export markets. In short the policy is an introduction to an integrated and tech-enabled approach to the logistics operations.
Maharashtra Logistic policy
A survey was conducted by Ministry of Commerce and Industry titled ‘Logistics Ease Across Different States’, Gujarat, Punjab, and Haryana were ranked the top three states having better road and railways infrastructure, road freight rates, quality of warehousing infrastructure etc. Maharashtra was ranked 5th in the Logistic Performance Index ranking in India.
Maharashtra is the backbone of Indian economy. If India grows at 8 % than astonishingly Maharashtra growth would be at least 10 % as it is gravitational centre of the country. Maharashtra being India’s biggest economy and contributes 15% to India’s GDP has a weaker position in the Logistic sector. To improve the position and enhance the contribution on Maharashtra in the Logistic sector, the state government has introduced Maharashtra Logistic policy. To know Maharashtra Logistic Policy, Click Here.
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