Why is it in the news?

• According to Invest India, India to be among top 25 countries by 2030 in Logistics Performance Index ranking.

About the Logistics Sector

• Indian logistics sector is expected to reach USD 380 billion by 2025, up from USD 250 billion in 2021.
• India aims to reduce logistics cost from 13%-14% of GDP to 8%-10% of GDP by 2030.

Advantages of Efficient Logistics Sector:

• Ensures smooth and efficient supply chain management.
• Minimizes delays and reduces lead time, crucial for business operations.
• Fosters economic integration by improving connectivity between regions and markets.
• Enhances business competitiveness through reduced transportation, storage, and distribution costs.
• Generates employment in transportation, warehousing, distribution, and related services.

Challenges

• Fragmented supply chain with numerous small and independent players.
• Complex regulatory framework and bureaucratic procedures hindering business operations.
• Lack of qualified personnel proficient in supply chain management.
• Delays in shipments and increased costs due to lack of coordination between states.

Initiatives Taken to Promote Logistics Sector

• National Logistics Policy 2022: Promotes seamless flow of goods across the country and improves Indian goods’ competitiveness in domestic and global markets.
• Multimodal Logistics Parks (MMLPs): Aims to improve the country’s freight logistics sector by enabling efficient inter-modal freight movement to lower overall freight costs and time.
• Logistics Efficiency Enhancement Programme (LEEP): Designed to improve freight transport efficiency.
• PM GatiShakti: Initiative to improve logistics efficiency further.