National logistics policy will be a game-changer, say industry players

  • Experts and industry players hailed the long-awaited National logistics policycalling it transformational and a “game changer”.
  • The NLP includes a new one-stop-shop platform to digitally access all transport services to an online portal to process claims.
  • With NLP, the government’s immediate objective is to reduce the cost of logistics and bring it in line with global standards.

The Indian government has finally announced the long-awaited National Logistics Policy, which has industry players excited. The main objective of the new policy is to reduce the cost of logistics in line with global standards.

The NLP, as it is called, aims to standardize several aspects of logistics, including things like the Unified Logistics Interface Platform (ULIP), the Ease of Logistics Services (E-Logs) platform, etc.

Here are some of the objectives of the new National Logistics Policy:

  1. Reduce logistics costs from the current 14% of India’s GDP to 10% by the end of 2022. In countries like Singapore, the United States and South Korea, this rises to 8%.
  2. Improve the Logistics Performance Index and propel India into the top 25 countries.
  3. Minimize logistical problems through standardization of the warehousing industry and reduce the stress of transport on the roads by offloading some of it onto other modes of transport.
  4. Improving workforce skills through Gati Shakti Vishwavidyalaya.
  5. Solve logistics industry problems through unified service platforms like ULIP and E-Logs.

Industry players hailed NLP, saying it would be a game-changer.

“Pushing towards seamless multimodal transport and modern connectivity will be a game changer as it will also shift the stress of transport from road to other modes,” said Vineet Agarwal, Managing Director of Transport Corporation of India.

Sunil Nair, CEO of Snowman Logistics, said the long-awaited national logistics policy covered most of his expectations. “The integration of 30 systems from seven different departments is one of the most popular solutions,” said.

Easy access to information will also allow for better business opportunities, said Zaiba Sarang, co-founder of iThink Logistics.

“NLP gives the smallest person in the ecosystem access to information that was only available to key stakeholders. 85% own less than 10 trucks and their empty trucks can pick up the goods from the best place, which will earn them higher returns,” she said.

The government’s goal of reducing dependence on a single mode of transport is important, said Pervinder Singh Chawla, co-founder of Onmove.

“The NLP tries to have a solid infrastructure (the heart of logistics) and a technological infrastructure to support a rapidly growing manufacturing economy. The NLP focuses on tactical multimodal implementation (the cheetah tail) that is flexible, cost effective and agile,” he said.

NLP could be the UPI of logistics, analysts say

One of the common problems plaguing the Indian economy has been bureaucracy and bureaucracy. The NLP is also trying to solve this problem to some extent with ULIP, which is a one-stop interface that integrates all digital services for the transport sector in one place.

“The Unified Logistics Interface Platform (ULIP) will unite all digital services related to the transport sector in a single portal. The platform aims to break down individual silos, promote integration between different ministries/departments and create a one-stop-shop, thereby bringing transparency and efficiency,” said a report by JM Financial.

“The goal is to create a UPI-like structure in which every logistics service transaction can be authenticated,” the report adds, explaining how ULIP could transform the logistics landscape.

It remains to be seen whether ULIP can do for logistics what IPU did to send and receive money.


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