Budget 2020

Budget 2020: National Logistics Policy to be released soon

Among other things, it will create a single window e-logistics market

A National Logistics Policy, which will clarify the roles of the Union Government, State governments and key regulators, will be released soon by the Union government, Finance Minister Nirmala Sitharaman said on Saturday.

Presenting the Union Budget 2020-21 in Parliament, she said the policy would create a single window e-logistics market and focus on generation of employment, skills and make MSMEs competitive.

India’s logistics sector is highly fragmented and the aim is to reduce the logistics cost from the present 14% of the GDP to less than 10% by 2022. The logistics sector, with a market size of $160 billion, is very complex, involving than 20 government agencies, 37 export promotion councils, 500 certifications and 10,000 commodities.

It also involves 12 million employment base, 200 shipping agencies, 36 logistics services, 129 ICDs, 168 CFSs, 50 IT ecosystems and banks & insurance agencies. Further, 81 authorities and 500 certificates are required for export and import.

The Indian logistics sector provides livelihood to more than 22 million people and improving the sector will facilitate 10% decrease in indirect logistics cost, leading to a growth of 5 to 8% in exports. Further, it is estimated that the worth of Indian logistics market will be around $215 billion in the next two years, compared to about $160 billion at present.

Musthafa P.C., Co-founder and CEO, iD Fresh Food said: “With regards to perishable goods, measures for its transportation will help minimise the losses that the industry faces due to lack of it. Seamless national cold supply chain through PPP Model for fast transportation on national and international routes will help companies to reach more markets — domestic as well as international — where one can be assured of the freshness of the products.”

Vishal Sharma, CEO, DB Schenker India and Indian Subcontinent, said the fund allocation for infrastructure development for the transport sector, including railways and airports, is a major positive.

“With GST, we started on the path of unifying the country economically, the National Logistics Policy will build on that by enabling seamless transportation through alignment of different modes of transport.”

Umesh Revankar, MD and CEO, Shriram Transport Finance, said National logistics policy will bring in efficiency and reduce the turnaround time of the vehicle.

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Printable version | Feb 28, 2020 1:48:30 PM | https://www.thehindu.com/business/budget/logistics-policy-to-be-released-soon/article30715148.ece

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