India's logistics and
transportation sector is on a continuous path of enhancement, boosted by
consistent government backing and proactive initiatives, policies, reforms and
infrastructure development projects.
The government has proposed
Bharatmala Pariyojana, the Sagarmala Programme, Dedicated Freight Corridors,
National Industrial Corridor Development Programme, and Multi-Modal Logistics
Parks to be its primary infrastructure development initiatives. The initiatives
taken in policy are the National Logistics Policy (NLP), the PM GatiShakti
scheme, and other Ease of Doing Business reforms like streamlining processes
associated with customs clearance.
The National Logistics Policy (NLP) 2022
The National Logistics
Policy of 2022 (NLP 2022) is a comprehensive and strategic initiative by the
government of India to transform the nation's logistics sector. This policy is
designed to address the challenges and inefficiencies that contribute to high
logistics costs, hindering the competitiveness of domestic goods in the global
market.
The main objectives of the
NLP 2022 are to reduce logistics costs to match global benchmarks by 2030,
aiming to bring it down to around 8%., enhance India's position in the
Logistics Performance Index (LPI) and striving to be among the top 10 by 2030,
to digitally integrate different systems of road transport, railways, aviation,
commerce ministries and foreign trade to create a data-driven Decision Support
Systems (DSS) for an efficient logistics ecosystem, and to enable and ensure
the ease of logistics business through transparency and accessibility. Several
other key initiatives are closely aligned with the National Logistics Policy
2022.
PM Gati Shakti
Pradhan Mantri (PM) Gati
Shakti - National Master Plan is a transformative initiative by the Government
of India that aims to enhance the efficiency and competitiveness of the
country's logistics sector. PM Gati Shakti policy aims to transform the
logistics sector by working on several key objectives like infrastructure
development, digitization & technology adoption, streamlining regulatory
framework, skill development & capacity building, and sustainability & environment.
At the heart of Gati Shakti
is a digital platform that facilitates real-time data sharing among various
stakeholders, including government departments, private players, and local
bodies. This platform allows for better coordination, planning, and execution
of infrastructure projects.
Bharatmala Pariyojana
The Bharatmala Pariyojana,
a flagship initiative to improve connectivity and reduce logistics costs, has
made significant progress. The scheme was launched by the Government of India
to bridge the gap in infrastructural development and improve the effectiveness
of road traffic movement throughout India. The Bharatmala project focuses on
improving the efficiency of the National Corridors, including the Golden
Quadrilateral and the North-South and East-West Corridors, by addressing choke
points through the construction of elevated corridors, bypasses, ring roads,
lane expansions, and logistics parks.
The Bharatmala project is
already in motion and with its progress, there will be a cascading effect of
positive change across industries dependent on robust supply chain management.
With faster and more reliable logistics, businesses will thrive, new
opportunities will arise, and goods will reach both national and international
markets more efficiently and cost-effectively.
Sagarmala Programme
The Sagarmala Programme is
the flagship programme of the Government of India to enhance the performance of
the country's logistics sector by promoting the port-led development in the
country. The project aims to harness the potential of India's vast coastline
and waterways that would revolutionise logistics efficiency. It aims to
transform India's coastal infrastructure, enhance port connectivity, and boost
maritime trade and connectivity. It aims to create a seamless network of ports,
waterways, and associated infrastructure that will position India as a global
maritime hub. The vision of Sagarmala Programme is to reduce the logistics
costs for both the domestic and EXIM cargo while managing the optimal
infrastructure investment.
The Sagarmala projects are
categorized into five pillars – Port Modernization & New Port Development,
Port Connectivity Enhancement, Port-Led Industrialization, Coastal Community
Development and Coastal Shipping & Inland Water Transport.
Dedicated Freight Corridors (DFCs)
The Dedicated Freight Corridor
(DFC) is a major infrastructure project undertaken by the Indian Railways to
construct specialized freight-only railway corridors across the country. This
initiative aims to enhance the efficiency of freight movement by separating
freight trains from passenger trains, allowing for faster and heavier cargo
trains. The DFCs serve as a paradigm shift in the logistics and supply chain
infrastructure within the country.
The establishment of
Dedicated Freight Corridors is expected to lower logistics costs through the
use of higher axle load trains, Double Stack Container trains (DSC), and
enhanced access to the northern hinterland via western ports. Additionally, it
is anticipated to stimulate the development of new industrial hubs and Gati
Shakti Cargo Terminals.
The DFC initiative
comprises two primary corridors—the Eastern Dedicated Freight Corridor (EDFC)
and the Western Dedicated Freight Corridor (WDFC). The WDFC connects Dadri in
Uttar Pradesh to Jawaharlal Nehru Port in Mumbai, while the EDFC extends from
Ludhiana in Punjab to Dankuni in West Bengal. Both corridors are designed to
facilitate high-speed and high-capacity freight movement, significantly
reducing transit times and costs associated with cargo transportation.
National Industrial Corridor Development Programme
The government is
developing industrial corridor projects as part of the National Industrial
Corridor Development Programme (NICDP) for the development of greenfield
industrial areas, regions, and nodes to compete with the world's top
manufacturing and investment destinations. These projects aim to streamline
logistics by integrating industrial hubs with key transportation networks,
ensuring efficient cargo movement, and reducing costs for both domestic and
international trade.
By integrating these
industrial corridors with advanced rail, road, and port infrastructure, the
government is creating a robust logistics ecosystem. This will not only boost
India's manufacturing and export capabilities but also position the country as
a competitive hub for global trade.
Multi-Modal Logistics Parks
Multi-Modal Logistics Parks
(MMLPs) is a logistic programme by the Government of India, which are aimed at
improving the freight logistics sector by lowering overall freight costs and
time, cutting warehousing costs, reducing vehicular pollution and congestion,
and improving the tracking and traceability of consignments through
infrastructural, procedural and technological interventions. These parks are
set up under the Logistics Efficiency Enhancement Programme to serve as an
intermodal freight-handling facilities with mechanised material handling
provisions and will contain warehouses, specialised cold chain facilities,
freight/container terminals and bulk/break-bulk cargo terminals.
The facility of intermodal
connectivity—such as dedicated railway lines, access from prominent highways
and expressways—will allow the movement of commercial vehicles and connectivity
to an airport or a seaport. MMLPs will also include various value-added
services, including labelling, packaging, tagging and crating, thereby offering
a variety of services at a single location. Multi-modal logistics parks have
been established at 35 important strategic sites with a minimum area of 100
acres (40.5 hectares).
