How the National Logistics Policy 2022 Will Help India Grow


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How the National Logistics Policy 2022 Will Help India Grow

National Logistics Policy 2022

Post Date/Time:- 16 Nov 2022 at 17:08:36

The Indian logistics industry is one of the most important sectors of the economy, and it's about to get a lot better. This September, the government released the National Logistics Policy 2022, which lays out a roadmap for modernisation and growth.

This policy is intended to improve the logistics sector's coordination and efficiency, and it will have a big impact on businesses and consumers alike.

In this article, we'll take a closer look at the National Logistics Policy 2022 and discuss how it will help India grow.

What Is the National Logistics Policy 2022?

The National Logistics Policy is a comprehensive and ambitious plan that is expected to give a boost to the economy of India.

The National Logistics Policy (NLP) is a Government of India policy initiative established in 2016. The NLP's ambition is to make India a global logistics hub by integrating its various transportation infrastructure and services. The policy also aims to reduce logistics costs, which account for about 14% of the country's GDP.

To achieve these goals, the NLP has several key objectives, including:

  1. Improving transport infrastructure and connectivity
  2. Promoting the use of technology and automation
  3. Enhancing last-mile connectivity
  4. Optimising the use of resources
  5. Encouraging private sector investment

The new Logistics Policy 2022 has three major components:

  1. Comprehensive Logistics Action Plan (CLAP)
  2. Unified Logistics Interface Platform (ULIP)
  3. Dashboard for Ease of Logistics Services (E-LogS)

Among these three, CLAP acts as a foundation and all measures are implemented. The objective of the policy is to promote the seamless movement of goods across the country with minimal transaction costs.

Why Is This Policy Important for India?

The NLP is currently in its second phase, which will run from 2021 to 2025. In this phase, the policy aims to improve India's logistics capabilities further, focusing on reducing logistics costs and improving efficiency.

The NLP has been widely welcomed by the business community, as it is expected to boost the country's economy significantly. In particular, the policy is expected to benefit the export sector, which will become more competitive as logistics costs are reduced. In addition, the NLP is also likely to create new jobs in the logistics sector.

One of the key advantages of this policy is that it will help reduce the cost of logistics for businesses, which is currently around 14% of the total cost of goods in India. This will make Indian products more competitive in the global market.

The policy also aims to create employment opportunities in the logistics sector. It is estimated that implementing the policy will lead to the creation of nearly 22 million jobs in the logistics sector by 2025.

This policy is essential for India for many reasons.

  • First, as India's economy grows, logistics services will continue to increase. The National Logistics Policy provides a framework for the development of the logistics sector in India so that it can meet this increasing demand.
  • Second, the policy will help to improve the efficiency of the logistics sector in India, which will, in turn, reduce the cost of logistics services. This will make it easier for Indian businesses to compete in the global market.
  • Finally, the policy will help to create jobs in the logistics sector, which will provide opportunities for the millions of people who are looking for work in India.

The government is working on various initiatives to improve the infrastructure in the logistics sector. This includes setting up dedicated freight corridors, developing multi-modal transport hubs, and improving last-mile connectivity.

What Are the Key Points of the Policy?

The policy will focus on improving the efficiency of the logistics sector by integrating various stakeholders such as infrastructure, services, technology, and data.

In addition, the NLP will also focus on creating a robust and efficient cold chain infrastructure to cater to the needs of and healthcare industries. The policy also aims to promote the use of clean energy in the logistics sector and increase the use of inland waterways and coastal shipping.

This sector employs more than 22 million people in India, which through skill development, is expected to grow at the rate of 5 per cent in 5 years.

The policy has three main objectives:

- To promote the development of a competitive logistics sector in India

- To reduce the cost of logistics for Indian businesses

- To improve the efficiency of the logistics sector

To achieve these objectives, the policy sets out a number of measures, including:

- Establishing a National Logistics Council to coordinate logistics policy across different government departments

- Investing in infrastructure, such as building new logistics parks and upgrading existing ones

- Encouraging the use of technology to improve the efficiency of the logistics sector

- Introducing reforms to make it easier to do business in India

The policy is an ambitious one and, if successful, will go a long way towards achieving the government's goal of making India a leading global economic power.

How Will This Policy Help India Grow?

The NLP is focused on two key areas:

Integrating different agencies within the logistics ecosystem and deploying newer technologies to smooth the process flow. This will help reduce the logistics cost from 16 per cent of the Gross Domestic Product (GDP) to a global average of 8 per cent by 2030.

The policy also aims to create employment opportunities in the sector. It's expected that the industry will grow at a Compound Annual Growth Rate (CAGR) of 10.5 per cent through 2025 and employ more than 22 million people in India.

To achieve these objectives, the government has outlined a number of measures in the policy document. Some of these include: developing an integrated information system for tracking goods, increasing technology in logistics operations, and setting up Special Economic Zones for logistics parks.

What Are the Challenges in Implementing This Policy?

It's no secret that India needs better infrastructure. The country's infrastructure lags behind other major economies, and that's holding us back from reaching our full potential.

There are a lot of projects that need to be completed to bring our infrastructure up to speed, and that's going to take some time. But we're making progress, and the government is fully committed to making these projects a reality.

In the meantime, companies can work on improving their own internal logistics processes. Plenty of technologies can help make things smoother and more efficient. And by embracing these technologies, companies can get a head start preparing for the future of logistics in India.

What Are the Potential Benefits of the Policy?

Simply put, this policy aims to make life easier for everyone in the logistics sector. That's business owners, workers, and consumers alike.

In terms of boosting exports, the policy has identified four main areas of focus: transportation and infrastructure, information technology and e-commerce, customs and trade facilitation, and support services. The idea is to make it easier for companies to ship their products overseas and to make the entire process more streamlined and efficient.

But that's not all. The policy also looks to improve the livelihoods of small business owners and workers in the logistics sector. There are plans to set up training institutes to provide them with the skills they need to keep up with changing technologies. This will help to ensure that the workforce is skilled and up-to-date, which is essential for a thriving economy.

Significant Steps to be Undertaken for NLP

The first step is to integrate the digital system. This means that all the different systems of different departments will be connected so that information can be shared seamlessly and in real-time. This will help reduce the turnaround time for cargo movement and make things much smoother.

The second step is to create a Unified Logistics Interface Platform. This will ensure shorter and smoother cargo movement and enable the exchange of information confidentially in real time. So agencies will be able to communicate more effectively, which will lead to a decrease in wastage and an increase in efficiency.

The third step is to ease the logistics business through transparency and accessibility. This will help reduce the cost of doing business and make it easier for investors to get into the logistics industry.

And lastly, the fourth step is to set up a System Improvement Group that regularly monitors all logistics-related projects. This way, any issues can be tackled quickly and efficiently, and things can run smoothly without glitches.


This policy will play a huge role in India's growth trajectory. It's about effectively integrating different agencies and deploying newer technologies to smoothen the process flow. This is going to help reduce costs and boost efficiency across the board.

The result? More goods are getting delivered faster and at lower costs. Sounds good, doesn't it?

The government is hopeful that the new logistics policy 2022 will help India achieve its target of a 15% contribution to GDP from the logistics sector.

If you're involved in the logistics sector in any way, it's important to stay up-to-date with all the changes that are expected to take place. Keep an eye on this space for more updates on the National Logistics Policy 2022.

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Warehouse Automation: The Key to Efficient Inventory Management

Managing a warehouse can certainly be a daunting task, and the traditional manual methods are usually slow and prone to errors. That's where warehouse automation comes in. Automation is an incredibly powerful tool that can help you streamline your processes and improve efficiency. Through automation, you can gain more control over your inventory, reduce costs, and improve customer service.

Warehouse automation technology has become an increasingly popular trend in warehouse in Chennai to boost workflow efficiency and productivity. Automated solutions are designed to streamline tasks, reduce labor costs, and improve accuracy and inventory control. With the implementation of automated systems, warehouses can effectively manage their inventory, reduce costs, and maximize productivity. From automated picking and packing to RFID technology, automation is the key to efficient inventory management.

In this blog, we will explore how automation can help with efficient inventory management in warehouses, as well as how to take advantage of automated solutions to reach your goals.

What Is Warehouse Automation?

Warehouse automation is the use of automated technology to manage the storage, retrieval, and movement of goods within the warehouse. This means that robots and machines are used to process orders and keep track of items in the warehouse, which helps make your storage processes more efficient. With state-of-the-art automated technology systems, you can reduce labor costs, improve accuracy, and speed up inventory management.

The advantages of using automated technology in warehouses are clear. Automation eliminates manual data entry while ensuring consistent accuracy something that manual paperwork can’t always guarantee. Additionally, it ensures efficient storage procedures by helping you keep track of stock levels and product information throughout the supply chain. Automation also helps with order picking and packing, further reducing labor costs and increasing efficiency.

Ultimately, it gives your inventory management processes a much-needed boost increasing accuracy, reducing labor costs, speeding up processes, and improving customer satisfaction all at once.

Benefits of Warehouse Automation for Inventory Management

You may not realize it, but warehouse automation can be the key to efficient inventory management but first, let’s define what it means. Put simply, warehouse automation is the use of automated software and hardware systems to manage the workflow in a warehouse. This technology can help you cover everything from tracking stock levels to managing orders.

The benefits of warehouse automation for inventory management include the following:

  • Improved accuracy: Automated technology eliminates manual errors in stock tracking. By automatically inputting purchase orders and sales information into the system, you can keep track of all your stock with ease, eliminating the chances of making mistakes.
  • Streamlined operations: Automation software makes it easier to track when items are shipped, received or put in storage all without manual intervention. This allows you to respond quickly and efficiently to customer orders and ensure that goods arrive on time.
  • Reduced costs: State-of-the-art technologies help reduce manual labor costs associated with stock taking and shipping processes by eliminating human labor from these tasks. Plus, there's no need for additional paperwork or manual data entry with automated systems handling the job.
Whether you’re running a large-scale fulfillment operation or a small online store, automating your storage facility is an essential step towards streamlining operations, ensuring high levels of accuracy and reducing costs.

Automating the Entire Inventory Management Process

One of the key benefits of warehouse automation is that it can automate the entire inventory management process. Without relying solely on manual operations and processes, you can quickly gain visibility into your warehouse's efficiency and accuracy.

Automating processes like receiving, storage, put-away, picking, packing, and delivery can be detrimental to your warehouse's productivity and profitability. Not only will it help you reduce errors due to manual workflows, but it will also help you optimize your warehouse operations by eliminating low value tasks.

Here are some examples of how automation can simplify the entire inventory management process:

  • Automated receiving: Automated receiving systems can identify when packages arrive on site and flag any discrepancies for immediate resolution. This helps save time and increases accuracy in your inventory data.
  • Automated storage: With automated storage systems, items are quickly stored in their designated locations with optimal space utilization. This helps minimize labor costs associated with manually searching for a product’s location or carrying them from one point to another.
  • Automated picking and packing: Automated picking systems help reduce search time for orders and increase accuracy by eliminating human error from manual selection errors due to misreading of pick lists or wrong product codes being selected. Packing robots can also handle large volumes of orders at a rapid pace which can reduce order fulfillment time significantly.
All these automated processes combined make efficient inventory management a breeze saving time money, and resources in the process!

To Sum Up

To summarize, warehouse automation is an effective and efficient way to manage inventory. It can provide numerous benefits, from improved accuracy to a greater level of control over processes. With automated warehouse systems warehouses can boost their efficiency and accuracy as well as reduce costs. Automation can also help reduce human error and create a seamless process for inventory management.

When implemented correctly warehouse automation can be a powerful tool for warehouse and inventory management. As technology continues to evolve, automated warehouse solutions will become increasingly popular and will become the go to solution for warehouses storage facilities and inventory management. So if you're looking for an efficient way to manage your inventory, then look no further than automation technology.It’sthe key to streamlined efficient inventory management.

Warehousing costs
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A Complete Guide To Warehouse Costs

Warehousing costs are an integral part of the supply chain process but are often overlooked. It is essential to have a clear understanding of all the costs associated with warehousing in order to maximize efficiency and profitability.

In this blog post, we will cover everything you need to know about warehousing costs, including the different types of costs and ways to reduce warehouse service fees. We will also discuss the benefits of outsourcing warehousing to a third-party provider. Read on to learn more!

What are Warehousing Costs?

Warehousing costs refer to the fees associated with operating a warehouse, such as rent, utilities, labor, insurance, maintenance, and taxes. It also includes the cost of goods stored in the warehouse, including the cost of inventory control, order fulfillment, and other related services. These are necessary expenses for businesses that need to store large amounts of inventory for sale or distribution.

The cost of warehouse service depends on a variety of factors, like the size and location of the warehouse, the type of services offered, the number of shipments the warehouse handles, the type of goods stored, and the duration for which the facility will be used.

Let's take an example to grasp this better. For instance, if you want a warehouse in Pune, the warehousing fees will depend on the labor cost, the size of the storage facility, and the type of inventory management technology being used. Generally, the cost of a warehouse in Pune ranges from Rs. 15 to Rs. 25 per square foot per month.

Factors that Influence Warehousing Costs

  • Location

The location of warehouses will have a significant impact on the pricing of warehousing services. Warehouses located closer to customers and suppliers can reduce transportation expenses, while warehouses located in more populated areas can benefit from economies of scale.

  • Size

The size of the storage facility also affects the pricing. Larger warehouses require more staff and equipment, making them more expensive to operate.

  • Storage and Handling

The type of storage and handling facility further affects the overall pricing. Automated and climate-controlled warehouses can be more expensive, but they may be necessary to protect sensitive goods.

  • Labor Costs

Labor costings are a major factor in warehousing expenses. Depending on the size and complexity of the facility, staffing needs can vary.

  • Technology

Technology also influences the pricing of the warehouse service. Automated systems may streamline processes and reduce pricing, while sophisticated tracking systems help reduce errors and improve efficiency.

  • Insurance

Warehouses must be insured to protect goods from damage or theft. Insurance fees can vary depending on the types of goods stored and the value of those goods.

  • Security

The level of security in the storage facility will also influence the cost. Security measures such as CCTV and alarms may be necessary to protect valuable stock, and this will add to the overall price.

Categories of Warehousing Costs

  • Construction and Upkeep Costs
This includes the warehouse construction cost, including both material and labor costs. Additionally, upkeep expenses such as regular maintenance, repairs, and improvements are also included.

  • Equipment Costings

These include the purchase and maintenance of warehouse equipment such as forklifts, pallet jacks, conveyor belts, and other equipment necessary for the efficient operation of the warehouse.

  • Storage and Inventory Costs

This specifically refers to the storage cost of inventory, including both the cost of the space and the cost of the inventory itself.

  • Labor Wages:

Labor costs include the wages of warehouse personnel, such as pickers, packers, and other staff members.

  • Technology Costs

This encompasses any technology needed to run the warehouse effectively, such as warehouse management systems.

  • Shipping and Transportation Costs
This category entails the cost of shipping both inbound and outbound goods, as well as the cost of transportation and fuel.

Top-Notch Trends in Warehousing Cost Reduction

One of the top trends in warehouse cost reduction is the implementation of automation practices. Automation can help reduce costs by streamlining warehouse operations and eliminating manual labor. Additionally, automation can also help reduce labor costs by automating warehouse tasks such as inventory control, order fulfillment, and receiving. Furthermore, the implementation of warehouse management systems can help reduce errors and increase efficiency. Finally, investments in industry-edge technologies can help improve accuracy and reduce operational expenses.

All of these above-mentioned strategies enable businesses to reduce costs while increasing the productivity of their warehousing operations.

How to Reduce the Costs of Warehouse Service

  • Analyze Warehousing Operations

The foremost step in reducing expenses is to analyze your current warehousing operations. Identify areas where costs should be reduced, such as through improved inventory management, better use of space, and more efficient processes.

  • Embrace Automation

Automating warehouse services can greatly reduce operational expenses. Automating processes can reduce the need for manual labor, improve accuracy, and speed up operations.

  • Space Optimization

Optimizing storage space can reduce costs. Implementing a smarter storage system that utilizes vertical space can help make the most of the available space and reduce costs.

  • Adopt Lean Processes

Lean processes can help reduce pricing. These processes involve streamlining operations and eliminating waste.

  • Invest in Technology

Investing in technology can help save time, money, and resources by improving processes, reducing errors, and improving inventory management.

  • Negotiate Better Rates

Negotiating better rates with suppliers leads to reduced warehouse costs. This can include negotiating better shipping rates, discounts on bulk orders, and more.

  • Outsource Whenever and Wherever Possible

Outsourcing certain operations to a third-party logistics provider is the best possible way to save resources and increase efficiency. This can include outsourcing parts of the warehousing operations, such as storage, distribution, and transportation.

Benefits of Outsourcing Warehouse Service to a Third-Party Logistics Provider

Outsourcing warehousing to a third-party provider can bring about a number of benefits for businesses. By outsourcing warehouse services, businesses can save time and money that would otherwise be spent on expenses such as staffing, equipment, and maintenance. Additionally, third-party providers are often able to provide businesses with more efficient storage and distribution systems.

Furthermore, businesses are able to benefit from access to an experienced team that can provide necessary support in areas such as inventory management, customer service, and order fulfillment. All in all, businesses can focus their resources on core processes instead of managing a warehouse, allowing them to focus on activities that will help them meet their goals and objectives.

Concluding Remarks

To offer concluding remarks, warehousing costs are a necessary part of running a business and must be carefully managed in order to stay competitive. The cost of warehousing includes both the cost of the physical facility and the cost of the labor and services needed to keep it running. By understanding the different components of warehousing fees, businesses can better manage their warehousing expenses and increase their profits. With careful planning, businesses can be sure to get the most out of their operations, enabling their business to succeed and thrive.

G20 logistics
27 Feb 2023

Will India's Mint Ever Rule The World? Coveted Access To Logistics At G20 Meetings

The G20 meetings are an annual forum for global leaders to come together and discuss major economic, social and political issues. Access to these meetings is highly sought after and usually limited to representatives of member countries. However, logistics companies may be able to gain access to some of the events by working with the organizers. This can be done by providing services such as transportation and logistics support, or by becoming a sponsor of the event. Logistics companies can also work with governments and international organizations to gain access to G20 meetings. This can include providing logistical support for meetings and attending related meetings such as trade summits. In addition, companies may be able to take part in some of the meetings by working with local or regional governments.

The G20 trade track which began at the Osaka summit in 2019, is a forum for discussion on global trade issues among member countries. The forum provides a platform for countries to share their views on a range of trade-related issues and to identify measures to facilitate global trade.

No, India's Mint will not ever rule the world. It has no authority to do so. India's Mint is responsible for managing the country's currency and creating coins and paper money. It does not have the authority to govern other nations. However, India is a member of the G20 and it has access to logistics at G20 meetings. This allows India to influence decisions made at the G20 and to promote its own interests.

At the Osaka summit, India proposed the setting up of a task force on global supply chains. The task force will work towards improving the efficiency of global supply chains and making them more resilient.

The objective of the task force is to identify and address the challenges faced by global supply chains. It will also look at ways to harness the benefits of technology to make supply chains more efficient.

The task force will be chaired by India and will comprise representatives from all G20 countries. It is expected to submit its report at the next G20 summit.
India's Mint has been making a strong bid for global dominance lately.

As part of this effort,

India has been pushing for more access to international markets.

For instance, India is seeking to secure its integrity in the global markets by gaining access to logistics at G20 Meetings. The economic opportunities that such access would bring are quite significant. For example, India could potentially benefit from increased global trade.
India's Mint is highly coveted for its access to logistics at G20 meetings.
This access would provide India with greater access to global markets, as well as an opportunity to bring Indian products to the world. The access to logistics would also enable India to implement its own supply chain and ensure that Indian products are distributed worldwide. Additionally, the access to the logistics would allow India to secure the stability of its own currency.

Some believe that India's Mint will eventually rule the world.

They point to a number of factors which support this claim. Firstly, India's geographical position at the heart of South Asia gives it a strategic advantage. Secondly, the country is home to a large and growing population, which offers a potential consumer base of over 1.3 billion people. Thirdly, the nation's economy is expected to grow over the coming years and become the world's third-largest by 2050. Finally, India is making great strides in information technologies and other industries, which is helping to propel the Indian economy forward.

However, others are not so sure.

It is argued that for India to make its mark as a major global player, its economy must become stronger. Additionally, global markets can be unpredictable, and India's Mint may not be able to handle the volatility of international markets. Moreover, the access to logistics at G20 meetings is not a panacea, and India must continue to seek ways to strengthen its domestic economy.

What do you think?

Will India's Mint eventually rule the world? India is certainly setting itself up in a strong position. But to achieve its full potential, the nation must continue to focus on improving its economy and ensuring that it develops strong ties with international partners. Ultimately, only time will tell if India achieves its goal of global dominance.

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Our Latest Blogs

Warehouse Automation
30 Mar 2023
we will explore how automation can help with efficient inventory management in warehouses, as well as how to take advantage of automated
Warehousing costs
14 Mar 2023
we will cover everything you need to know about warehousing costs, including the different types of costs and ways to reduce warehouse service fees
G20 logistics
27 Feb 2023
The task force will be chaired by India and will comprise representatives from all G20 countries

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