Getting it right, in five ways: Commerce and industry minister says growth will receive a big boost from new logistics policy

Source: The post is based on an article “Getting it right, in five ways: Commerce and industry minister says growth will receive a big boost from new logistics policy” published in The Times of India on 10^th October 2022.

Syllabus: GS 2

Relevance: benefits of New Logistic Policy

News: The government has recently come up with the New Logistics Policy (NLP). It will benefit India in many ways and lead India towards a developed country in coming 25 years.

What are the components of NLP?

New Logistics Policy focuses on 5 ‘R’s. They are –

1. Getting the right product;
2. In the right condition;
3. At the right place;
4. At the right time;
5. To the right customer.

What are the benefits of the new logistics policy?

Costs: It will reduce logistics costs from an estimated 13-14% of GDP to single-digit. The policy will benefit small farmers and many MSMEs by lowering the transportation costs.

Farmers: This will benefit farmers as they have to sell their products at low prices due to the fear of rotting.  However, the NLP will improve connectivity and benefit farmers by giving them the required price of their products.

Governance: The New Logistics Policy along with PM Gati Shakti will end the isolation in the governance of infrastructure.

• These policies will help in building high-quality rural roads and expressways, improving container turnaround time, faster and safer railways and dedicated freight corridors amongst others.

Exporters: Exporters will gain a lot from better logistics as their goods will become more competitive and can be delivered to buyers in a faster and more predictable manner.

• The Unified Logistics Interface Platform has been launched under the NLP to help exporters facing various hurdles in exports such as compiling shipping bill numbers.
• Further, a digital platform named Ease of Logistics Services (eLOGS) under the logistics policy will help resolve any issue faced by the exporters.

India has already seen improvement in its logistics before by the movement of oxygen and food during the peak of pandemic.

Further, this new policy will boost the economy by creating jobs, eliminating disparities between wealthy metropolitan areas and the countryside and creating massive savings from efficiency gains.