National Logistics Policy would reduce cost and improve competitiveness: FICCI

Sep 18, 2022

NEW DELHI, 18 September 2022: FICCI welcomes the National Logistics Policy announced by the Hon'ble Prime Minister Mr Narendra Modi. The policy has the potential to significantly reduce costs, improve industry competitiveness, and along with Gati Shakti, the resultant unified policy environment would substantially strengthen the logistics sector through optimum inter-ministry coordination and deployment of resources.

Commenting on the National Logistics Policy, FICCI President Mr Sanjiv Mehta said, "We believe that combining the strengths of different modes of transport, adopting technology, and digitisation will give a major fillip to the industry. The National Logistics Policy and the PM Gati Shakti would significantly help to reduce costs and augment competitiveness."

Mr Rizwan Soomar, Chairman of the FICCI Committee on Logistics, also welcomed the announcement. "With PM Gati Shakti significantly boosting the pace of infrastructure development in the country, it is an opportune time for an integrated tech-enabled approach to logistic operations to bridge efficiency gaps and improve industry competitiveness," he added.

Mr Arun Chawla, Director General, FICCI, said, "The focus on building an efficient multimodal transport mix, comprising 45 per cent of freight movement by road, 40 per cent by rail and 15 per cent through coastal shipping and inland waterways, in the National Logistics Policy is significant. It will reduce costs, but importantly, will help create jobs in the nascent opportunities like inland waterways."

The policy will help create a paperless, digitally connected supply chain. It will, in turn, ensure the speed of movement of goods and would also free up capital. As a result, FICCI believes small entrepreneurs and MSMEs would significantly benefit, both in terms of cost and competitiveness. Moreover, the policy will reduce carbon footprint in keeping with sustainable growth objectives.