PM Modi unveils the National Logistic Policy

National Logistics Policy: Prime Minister Narendra Modi on 17 September 2022 unveiled the National Logistics Policy in Vigyan Bhavan in Delhi.

Key Points:

  • The National Logistics Policy seeks to address challenges facing the transport sector and bring down the logistics cost of businesses from 13-14 per cent to a single digit.
  • The policy aims to expedite the last-mile delivery, helping businesses to bring down the time & cost of transportation.
  • It will also prevent damage to agricultural products by providing faster transportation.
  • The reduced logistics cost and increased efficiencies will not only energise the economy across sectors in multiple ways but will also take India many steps closer to emerging as a global manufacturing powerhouse.
  • Its focus areas are Unified Logistics Interface Platform (ULIP), Ease of Logistics (ELOG), Integration of Digital System (IDS) and System Improvement Group (SIG).
  • The ULIP is a system that aims to monitor smooth cargo movement.
  • A new digital platform - Ease of Logistics Services (ELOG) - has also been started to simplify procedures and achieve ease of doing business.
  • The IDS will integrate 30 different systems of seven different departments, such as customs, aviation, road transport, railways, international trade and commerce ministries into a single platform, relieving exporters of a number of extremely time-consuming and burdensome processes.
  • The SIG would keep a regular eye on all logistics-related projects and ensure the removal of hurdles faced in the sector.
  • An empowered group of secretaries (EGoS), constituted under the PM Gati Shakti, would monitor and review the implementation of the policy.
  • Besides improving ease of doing business and ease of living, the National Logistics Policy will work in tandem with PM Gati Shakti National Master Plan to usher in an unprecedented era of 'ease of moving' in the country, ensuring speedier and seamless movement of cargo and people across various modes of transport.

What is National Logistics Policy?

  • Deepak Sood, the Assocham General Secretary described the National Logistics Policy as a major structural transformative initiative which will substantially reduce transaction costs across the entire supply chain.
  • The policy will facilitate India being embedded across global value chains, as we move ahead on the path towards Bharat@100.


  • The Central government has been working on the National Logistics Policy for three years.
  • The commerce ministry released a draft logistics policy for consultation in 2019, but it was delayed due to Covid-19 pandemic.
  • The National Logistics Policy was once again announced by finance minister Nirmala Sitharaman in the Budget for 2022-23.

India’s Logistic Sector:

  • India’s logistics sector employs over 22 million people.
  • The sector is complex, as it is governed by more than 20 government agencies, 40 partner government agencies, 37 export promotion councils, 500 certifications etc.
  • India has a logistics cost to GDP ratio of 16%, which is significantly higher than China's 10%, the US and EU's 8%, and Europe's 4%.
  • According to the recent World Bank statistics, India is currently rated 44th in terms of logistics costs.