India finally has a National Logistics Policy (NLP). The policy aims to achieve, among others, ‘quick last-mile delivery, end transport-related challenges; save time and money of manufacturers, and prevent wastage of agro-products. The end result is significant time and the cost reduction.’
As Prime Minister Narendra Modi said, the policy has not come out of the blue but after eight years of work. He said that the policy was a beginning and not the end. It is policy plus performance that will energise all sectors and help transform the country into a developed nation by the end of Amrit Kaal, in 2047.
Countries like the US, South Korea, Singapore, and certain European nations have such a low logistics cost-to-GDP ratio.
Logistics encompasses planning, coordinating, storing, and moving resources people, raw materials, inventory, equipment, etc., from one location to another, from the production points to consumption, distribution, or other production points. Reduce the cost of logistics from 14-18 percent of GDP to global best practices of 8 percent by 2030. Countries like the US, South Korea, Singapore, and certain European nations have such a low logistics cost-to-GDP ratio. Assuming the current cost is 16 percent of GDP; that would mean that logistics costs have to be cut by half to be near global benchmarks by 2030, assuming the global benchmark does not improve further