GS Paper - 3 (Economy)

The Prime Minister launched the National Logistics Policy (NLP) at the Vigyan Bhawan in New Delhi. The policy is aimed at promoting seamless movement of goods and enhancing the competitiveness of the industry. It is expected to focus on areas such as process re-engineering, digitisation, and multi-modal transport.

More about NLP

  1. The policy seeks to support faster growth after two pandemic-ridden years. It will streamline rules and address supply-side constraints, besides providing a roadmap to reduce fuel costs and lower logistics costs.
  2. The draft policy provides for the government creating a single point of reference for all logistics and trade facilitation matters, reducing costs for the logistics sector to 10 per cent in five years. The logistics sector is estimated at 13-14 percent of GDP.
  3. The policy is an endeavour to improve the competitiveness of Indian goods, enhancing economic growth and increasing employment opportunities.
  4. An unified logistics interface platform (ULIP) will be developed as part of the national logistics policy to help different government and private agencies; shippers, service providers enable information exchange on a real time basis in a confidential manner.
  5. The other interventions proposed include Standardisation of physical assets and benchmarking service quality standards; Logistics Human Resources Development and Capacity Building; state engagement; export-import logistics; Service Improvement framework; Sectoral Plan for Efficient Logistics; and Facilitation of Development of Logistics Parks.
  6. NICDC's (National Industrial Corridor Development Corporation) Logistics Data Bank Project has been leveraged to develop ULIP.


  1. 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 by the Covid-19 pandemic.
  2. The National Logistics Policy was once again announced by Finance Minister Nirmala Sitharaman in the Budget for 2022-23.
  3. The government is using technology to strengthen the logistics sector. Faceless assessment has started in customs and e-way bills and FASTag are bringing efficiency in the logistics sector.
  4. Sagarmala project to connect ports and dedicated freight corridors have started to improve logistics connectivity and systematic infrastructure development work.