PM Narendra Modi to release national logistics policy on September 17th
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Prime Minister Narendra Modi will release the national logistics policy on September 17th, which is aimed at promoting a seamless movement of goods across the country, Commerce and Industry Minister Piyush Goyal said on Tuesday.
The policy will create a single window e-logistics market and focus on the generation of employment, and skills and make MSMEs competitive. India’s logistics sector is highly defragmented and the aim is to reduce the logistics cost from the present 14% of GDP to less than 10% by 2022.
India’s logistics sector is very complex with more than 20 government agencies, 40 PGAs, 37 export promotion councils, 500 certifications, 10000 commodities, 160 billion market size. It also involves a 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 EXIM.
The Indian logistics sector provides livelihood to more than 22 million people and improving the sector will facilitate a 10 % decrease in indirect logistics costs leading to the growth of 5 to 8% in exports.
Further, it is estimated that the worth of the Indian logistics market will be around USD 215 billion in the next two years compared to about USD 160 billion at present.
The following are some of the announcements in the Finance Minister’s Budget Speech that will make the National Logistics Policy more robust:
1. The introduction of GST has brought efficiency to the logistics and transportation sector. It has reduced the turnaround time of trucks by over 20%.
2. Single window e-Logistics Market place and focuses on the generation of employment, and skills and making MSMEs competitive.
3. Accelerated development of highways will be undertaken. 2500 km. of access-controlled highways, 9000 km. of economic corridors, 2000 km. of coastal and land-port roads, and 2000 km. of strategic highways.
4. Delhi – Mumbai, and Chennai – Bengaluru express highways are to be made operational by 2023. 12 lots of highway buildings consisting of over 6000 km. shall be offered for monetization by 2024.
5. Inland Waterways especially Jal Vikas Marg (NW1) will be made operational.
6. Inland Waterways from Dhubri to Sadia in Assam shall be promoted by 2022.
7. Inland Waterways shall be promoted under the Programme called Arth-Ganga i.e., promoting economic activities along with banks of the river.
8. 100 more airports shall be established under the UDAN scheme.
9. 1200 airplanes shall be added from the present 600.
10. 1.7 lakh crore have been allocated for the transportation sector in 2020-21.
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