{"id":54360,"date":"2025-09-17T20:28:24","date_gmt":"2025-09-17T14:58:24","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=54360"},"modified":"2025-09-19T11:47:21","modified_gmt":"2025-09-19T06:17:21","slug":"third-anniversary-national-logistics-policy","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/17-09-2025\/third-anniversary-national-logistics-policy","title":{"rendered":"Third Anniversary of the National Logistics Policy (NLP)"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Department for Promotion of Industry and Internal Trade (DPIIT) commemorates the<strong> third anniversary of the National Logistics Policy (NLP),<\/strong> launched in <strong>2022<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Its key objectives are:<\/strong>\n<ul class=\"wp-block-list\">\n<li>to<strong> reduce logistics costs<\/strong> to global benchmarks and to <strong>bring it below 10% of GDP,<\/strong><\/li>\n\n\n\n<li>improve India\u2019s ranking in the Logistics Performance Index (LPI) to the <strong>top 25 by 2030,<\/strong><\/li>\n\n\n\n<li>to establish a <strong>robust, data-driven decision support system <\/strong>to ensure an efficient and integrated logistics ecosystem.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Achievements of India\u2019s Logistics Sector<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The Unified Logistics Interface Platform (ULIP) <\/strong>has facilitated secure Application Programming Interface (API) integration across more than 30 digital systems.&nbsp;<\/li>\n\n\n\n<li><strong>Ranking in 2023 Logistics Performance Index (LPI): India was ranked 38th place out of 139 nations, <\/strong>a notable improvement of six places since the last ranking in 2018.&nbsp;<\/li>\n\n\n\n<li><strong>The Inland Waterways Authority of India (IWAI)<\/strong> recorded cargo movement of 145.5 million tonnes in the year 2024\u201325.\n<ul class=\"wp-block-list\">\n<li>The number of operational national waterways has also increased from 24 to 29 during the same period.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Overview of the Logistics Landscape in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India\u2019s logistics sector was valued at <strong>USD 215 billion in 2021.<\/strong> It is well-positioned for strong growth with an expected compound annual growth rate (CAGR) of <strong>10.7% till 2026.&nbsp;<\/strong><\/li>\n\n\n\n<li>In 2017, a <strong>separate logistics unit <\/strong>was created under the Department of Commerce to oversee the Integrated Development of Logistics Sector.&nbsp;<\/li>\n\n\n\n<li><strong>The Logistics Industry supports<\/strong> manufacturing, retail, e-commerce, and services by managing inventory, transportation, storage, warehousing, and distribution, linking producers to consumers, both domestically and internationally.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Advantages of Efficient Logistics Infrastructure<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Supply chain efficiency:<\/strong> Logistics ensures a smooth and efficient supply chain, minimising delays and reducing lead times.&nbsp;<\/li>\n\n\n\n<li><strong>Connectivity and Accessibility:<\/strong> Logistics networks enhance connectivity and accessibility, linking various regions and markets.&nbsp;<\/li>\n\n\n\n<li><strong>Cost reduction and competitiveness:<\/strong> Efficient logistics operations contribute to cost reduction in transportation, storage, and distribution.&nbsp;<\/li>\n\n\n\n<li><strong>Job creation: <\/strong>The logistics sector is a significant source of employment, providing jobs in transportation, warehousing, distribution, and related services. The sector is projected to add 1 crore jobs by 2027.<\/li>\n\n\n\n<li><strong>Economic integration: <\/strong>A well-developed logistics sector facilitates economic integration by connecting various economic zones and promoting a seamless flow of goods and services.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>High Logistics Cost:<\/strong> India\u2019s logistics cost is very high at around 13\u201314% of GDP, making Indian exports less competitive compared to global peers.<\/li>\n\n\n\n<li><strong>Infrastructure Gaps:<\/strong> The sector suffers from infrastructure gaps in warehousing, cold storage, and last-mile connectivity.<\/li>\n\n\n\n<li><strong>Overdependence on Road:<\/strong> There is an overdependence on road transport, which causes congestion, delays, and higher transportation costs.<\/li>\n\n\n\n<li><strong>Multimodal Transport Issues: <\/strong>The low share of railways and inland waterways in freight transport hampers the development of an efficient multimodal system.<\/li>\n\n\n\n<li><strong>Environmental Concerns: <\/strong>Heavy dependence on diesel-based trucking increases carbon emissions and contributes to environmental pollution.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Government Initiatives in Logistics<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>PM GatiShakti Master Plan: <\/strong>It was launched in <strong>2021 <\/strong>to integrate different modes of transport into a coordinated network.\n<ul class=\"wp-block-list\">\n<li>It has brought together 57 Central Ministries\/Departments and all 36 states and union territories.&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Maritime Amrit Kaal Vision 2047: <\/strong>It is aligned with blue economy principles, lays out a long-term roadmap to transform India\u2019s maritime sector.\n<ul class=\"wp-block-list\">\n<li>The vision also aims to boost coastal tourism, strengthen maritime skill development, and position India as a global hub for shipbuilding and repair.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/05-11-2024\/dedicated-freight-corridors-dfcs\" data-type=\"link\" data-id=\"https:\/\/www.nextias.com\/ca\/current-affairs\/05-11-2024\/dedicated-freight-corridors-dfcs\">Dedicated Freight Corridors<\/a>: <\/strong>The Ministry of Railways is currently developing two Dedicated Freight Corridors (DFCs).\n<ul class=\"wp-block-list\">\n<li>The objectives of these specialized railway lines are to ease congestion on existing passenger routes, lower transportation costs, and improve energy efficiency.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"e8eef7\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"644\" height=\"674\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/09\/dedicated-freight-corridors.webp\" alt=\"dedicated-freight-corridors\" class=\"not-transparent wp-image-54362\" style=\"--dominant-color: #e8eef7; width:384px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/09\/dedicated-freight-corridors.webp 644w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/09\/dedicated-freight-corridors-287x300.webp 287w\" sizes=\"auto, (max-width: 644px) 100vw, 644px\" \/><\/figure>\n<\/div>\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Multi-Modal Logistics Park:<\/strong> 35 key locations such as Chennai, Bengaluru, Nagpur, Indore, and others have been approved through both private and public sector efforts for the development of MMLPs. Out of these, 5 are expected to be operational by 2027.<\/li>\n\n\n\n<li><strong>Unified Logistics Interface Platform (ULIP): <\/strong>It is<strong> <\/strong>a digital platform that brings together data from various logistics-related ministries and departments on a single interface; it has recorded 100 crore API transactions in 2025.<\/li>\n\n\n\n<li><strong>Gati Shakti Vishwavidyalaya (GSV): <\/strong>The GSV is<strong> India\u2019s first university<\/strong> dedicated to transport and logistics education.\n<ul class=\"wp-block-list\">\n<li>GSV plays a key role in preparing skilled professionals to support this national goal.&nbsp;<\/li>\n\n\n\n<li>Gati Shakti Vishwavidyalaya has signed Memoranda of Understanding (MoUs) with about 40 different industrial and academic institutions.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Sustainability:<\/strong><strong>The Freight Greenhouse Gas (GHG) Calculator<\/strong> has been developed for calculating and comparing the total cost of transportation and GHG emissions to build awareness and support sustainable development.\n<ul class=\"wp-block-list\">\n<li>The Indian Railways has launched<strong> Rail Green Points<\/strong> for freight customers, allowing them to see potential carbon emission savings.&nbsp;<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=2167224#:~:text=The%20Department%20for%20Promotion%20of,Modi%20on%2017th%20September%202022.\" rel=\"nofollow noopener\" target=\"_blank\"><strong>PIB<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>Context<\/strong><\/h3>\n<li class=\"ms-5\">The Department for Promotion of Industry and Internal Trade (DPIIT) commemorates the third anniversary of the National Logistics Policy (NLP), launched in 2022.<\/li>\n<p><\/p>\n<h3><strong>Key Achievements of India\u2019s Logistics Sector<\/strong><\/h3>\n<li class=\"ms-5\">The Unified Logistics Interface Platform (ULIP) has facilitated secure Application Programming Interface (API) integration across more than 30 digital systems.\u00a0<\/li>\n<li class=\"ms-5\">Ranking in 2023 Logistics Performance Index (LPI): India was ranked 38th place out of 139 nations, a notable improvement of six places since the last ranking in 2018.\u00a0<\/li>\n<li class=\"ms-5\">The Inland Waterways Authority of India (IWAI) recorded cargo movement of 145.5 million tonnes in the year 2024\u201325.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/17-09-2025\/third-anniversary-national-logistics-policy\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-54360","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/54360","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=54360"}],"version-history":[{"count":4,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/54360\/revisions"}],"predecessor-version":[{"id":54429,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/54360\/revisions\/54429"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=54360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=54360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=54360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}