New Warehousing policy to reduce India’s high logistics cost
Recently a new warehousing policy is being considered to reduce India’s high logistics cost.
The government is planning to bring a warehousing policy. It will prepare a roadmap for developing specialized warehousing sectors through public-private partnership.
- These warehouses will be equipped with proper storage facilities. These will be installed on the outskirts of major cities to avoid traffic congestion within city limits.
- It aims to help reduce the transportation and logistics cost in the country.
- Logistics cost in India remains high at 14-16 per cent of GDP. It accounts for 8-10 percent of GDP in China and 9-10 percent in the US.
- Gap in infrastructure, fragmented legal and regulatory environment, unconnected information technology system, excessive reliance on road transport, lack of skilled workforce, less predictable supply chains, etc.
Measures taken to improve the logistics system
- Providing infrastructure status to the logistics sector: This will facilitate exporters to provide credit at competitive rates and on a long-term basis. The National Logistics Policy is in the final stages of being issued.
- PM Gati Shakti – National Master Plan is being implemented to provide multimodal connectivity to various economic sectors in the country. 35 Multimodal Logistics Parks will be developed across the country.
Source – The Hindu