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September 16, 2021 | By SME Futures
India is set to get the National logistics Policy 2022 on September 17 2022, as PM Narendra Modi will launch the policy on his birthday at Vigyan Bhawan. The logistic policy is aimed at bringing down the logistic costs and improving the competitiveness of domestic goods in the global market.
As the union minister of Commerce and Industry, Piyush Goyal said, “The aim of the new policy is to facilitate seamless movement of goods across the country.
India spends around 13 to 14 per cent of gross domestic product (GDP) on logistics costs. While countries like Germany and Japan, which are known for their developed logistics infrastructure and systems, spend just around eight to nine per cent of the GDP on logistics costs.
The logistic sector has more than 20 government agencies, 40 Partner Government Agencies (PGA), 37 export promotion councils, 500 certifications, over 10,000 commodities and a US$ 160-billion market.
According to the World Bank Logistics Index of 2018, India is ranked 44th in logistics costs, far behind countries like the United States and China which are at the 14th and 26th positions, respectively.
Speaking of his expectations from the policy, the COO & Co-founder of Shipsy, a logistics low-code SaaS company, Dhruv Agrawal said, ” India’s logistics infrastructure is complex. A greater push from the government to unify logistics stakeholders using integrated platforms that enhance collaboration and visibility of goods movement across India’s key supply chain decision makers will be a welcoming development.”
Manual clearance processes at ports for export and import operations take considerable time. This tends to impact the cost of executing international logistics operations and acts as a barrier to providing Indian consumers with that ‘fast’ delivery experience. Policies that mandate a certain degree of automation in customs clearance processes will make a winning difference for logistics-powered businesses.
Most importantly, policies guiding businesses to accelerate their sustainability goals will be critical. Especially now, when we are witnessing a surge in logistics activities due to continuously rising online delivery volumes. Also, helping the country’s supply chain industry move toward a more integrated logistics ecosystem” he signed off.
SHIPSY MEDIA CONTACTarjun.alva@shipsy.io
Read Article Source: https://smefutures.com/
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