How National Logistics Policy 2022 Will Reform the Indian Logistics Sector
Over the last decade, India has become a crucial business partner for many countries in the world. India contributes 7.5% to the world economy in purchasing power parity (PPP) terms. Nonetheless, India’s logistics sector remains largely unorganized, with 14.4% of GDP spent on logistics costs. Poor infrastructure, high logistics costs, and a lack of transparency are some of the most challenging aspects of the Indian logistics sector. To tackle these issues, the government of India formed a logistics division in 2017. With an aim to bring down logistics costs and create future-proof integrated infrastructure, Prime Minister Narendra Modi announced the National Logistics Policy, 2022.
What is the National Logistics Policy?
The National Logistics Policy was launched to enhance the efficiency of the scenario of the Indian logistics in order to build a sustainable and future-ready logistics ecosystem. NLP provides a comprehensive cross-functional framework for entire logistics operations as well as the integration of various government compliance agencies to drive the country’s economic growth.
Here’s how the National Logistics Policy, 2022 will bring revolutionary changes to the Indian logistics sector:
Improvements in the Global Logistics Performance Index:
India currently stands in 44th place in the global logistics performance index (LPI). Under the guidance of the National Logistics Policy, the Indian government aims to be in the top 25 countries by the year 2030.
Integration of compliances for seamless operations:
To bring flexibility and efficiency to the logistics ecosystem, the Indian government is launching the Unified Logistics Interface Platform (also known as ULIP). With ULIP, the government aims to integrate transportation-related systems and compliances under one unified platform to bring speed and ease to transportation-related documentation.
Using technology to build a transparent ecosystem:
Technology is key to turning the unorganized Indian logistics sector into a sophisticated, organized ecosystem. With the use of new-age technology under ULIP, the objective is to record every logistics and transport-related transaction. Paperless and easy-to-access documentation will offer great flexibility to transporters by saving their time and resources.
Act as a foundation for sustainable and green logistics:
The digitization of the logistics ecosystem will not only improve efficiency and reduce resource consumption; it will also be critical in establishing climate-neutral and sustainable logistics. Data collected from across the agencies will result in faster shipping, fuel efficiencies, and a better customer experience.
In a nutshell:
With the goal of becoming a developed country and one of the leading world economies by 2047, the Indian government’s steps toward revolutionizing the logistics sector will play a significant role. The integration of various systems under the National Logistics Policy will drive growth in transportation, supply chain, and the warehousing industry and increase India’s competitiveness in the global market.
Floww and National Logistics Policy:
Floww is a homegrown logistics SaaS company that helps transporters, delivery companies, and D2C brands with their own fleet manage their logistics needs. It offers digitization of logistics operations, an easy-to-use dashboard for managing orders, data, and payments, and hassle-free logistics documentation.
Floww’s transport management solutions are compliant with ULIP (Unified Logistics Interface Platform) and National Logistics Policy 2022.
