About NLP

• The National Logistics Policy 2022 was formulated by the Ministry of Commerce and Industry as a comprehensive effort to address issues of high cost and inefficiency by laying down an overarching framework for the development of the entire logistics ecosystem.
• The targets of the NLP are to: 

(i) Reduce the cost of logistics in India from 12% to 8% by 2030,

(ii) Improve the World Bank’s Logistics Performance Index ranking – endeavor is to be among Top 25 countries by 2030, and 

(iii) Create data driven decision support mechanism for an efficient logistics ecosystem.

• The NLP expects to achieve these targets through the implementation of a five-pronged strategy. 
  • Pushing up the share of railways from the current 28 per cent to 40 per cent. 
  • Setting up multi-modal logistics parks by encouraging private investment in hotspots identified on the GatiShakti platform. 
  • Giving special emphasis to inland water transportation, coastal shipping, and moving liquid bulk cargo via pipelines. 
  • Specific plans are to be drawn up for 15 industries that constitute the majority of bulk cargo movement. 
  • Digital integration is to be achieved for tracking and monitoring.
• The NLP’s transformational capacities further increase when combined with previous connectivity and infrastructure improvement programs like:
  • Gati Shakti Programme: To implement infrastructure connectivity in a coordinated manner.
  • Sagarmala: To promote port-led development and to provide infrastructure to transport goods to and from ports quickly, efficiently and cost-effectively. 
  • Bharatmala: Focuses on reducing critical infrastructure gaps to increase the effectiveness of road traffic circulation across the nation.