Comm min seeks views of different departments on national logistics policy

The commerce ministry has sought views of all the ministries, including steel, shipping, and others on the draft national logistics policy, which aims at promoting seamless movement of goods across the country, an official said. The draft policy also seeks to reduce the high transaction cost of traders.

The government wants to formulate the policy as the sector's growth is critical to boosting exports and economic growth. "We have sought some actionable points from all the ministries and departments on the policy," the official said.

The draft was floated by the logistics division of the commerce ministry. The cost of logistics for India is about 13-14 percent of the gross domestic product (which is over USD 2.5 trillion) and is much higher as compared to other countries.

The target is to reduce it to about 10 percent in the coming years. High logistics cost impacts the competitiveness of domestic goods in international markets.

Logistics is a key component for increasing the competitiveness of exporters and domestic traders by reducing transport costs and time and expediting the smooth movement of goods. In February, the commerce ministry had floated a 23-page draft policy with an aim to create a single point of reference for all logistics and trade facilitation matters in the country, which will also function as a knowledge and information sharing platform.

It has suggested several steps, including creating a national logistics e-marketplace. The draft also aims at simplification of documentation for exports/ imports and drive transparency through digitization of processes involving customs, in regulatory, certification and compliance services; and creating a data and analytics centre to drive transparency and continuous monitoring of key logistics metrics.