The National Logistics Policy (NLP), launched by Prime Minister Narendra Modi on September 17, 2022, is being celebrated on its third anniversary as a key force in reshaping India’s logistics landscape.
The policy’s main goals are to lower logistics costs to global benchmarks and push India into the top 25 of the World Bank’s Logistics Performance Index (LPI) by 2030. These objectives are being achieved through a focus on digital integration, skill development, and
regulatory reforms.
Industry leaders highlighted the policy saying that it has improved supply chain efficiency and reduced costs, enhancing India’s global competitiveness.
The Department for Promotion of Industry and Internal Trade (DPIIT) noted the NLP’s alignment with the PM GatiShakti National Master Plan.
“In just three years, the National Logistics Policy has emerged as a powerful catalyst for transformation, reshaping India’s logistics sector into one that is more cost-efficient, transparent, and globally competitive,” said Ketan Kulkarni, CEO of Allcargo Gati Limited. He noted that logistics costs are projected to drop to single digits around 9% of GDP by the end of 2025.
Digital innovations drive efficiency
The Unified Logistics Interface Platform (ULIP) has facilitated over 1.6 billion digital transactions by integrating more than 30 systems. The Logistics Data Bank has also tracked over 75 million containers, providing real-time visibility.
The Logistics Ease Across Different States (LEADS) index has been instrumental in tracking performance, with new metrics on digital logistics and sustainability contributing to India’s rise to the 38th position in the LPI.
“The results are already visible,” said Sarthak Elwadhi, Co-founder of TrucksUp, adding that the NLP has “opened doors for MSMEs and startups, empowering them to participate more actively in India’s growth story.”
Nikhil Agarwal, President of CJ Darcl Logistics, commented, “This policy framework has indeed empowered India’s emergence as a global hub for efficient, digitized and world-class logistics.”
Looking Ahead
The government is collaborating with the National Council of Applied Economic Research (NCAER) on a study to develop strategies for further cost reduction.
Initiatives like the Sectoral Policy for Efficient Logistics (SPEL) and the Logistics Excellence, Advancement, and Performance Shield (LEAPS) are fostering industry-specific solutions and promoting green logistics.