National Logistics Policy & PM Gati Shakti

6.1 India's Logistics Challenge

India's logistics cost at ~13% of GDP is among the highest in the world — China and USA are at 8–10%. This 3–5 percentage point excess represents:

• Rs 14–20 lakh crore/year in hidden costs
• Makes Indian exports 10–15% less competitive globally
• Caused by: poor road-rail integration, inadequate cold chains, bureaucratic customs clearance, lack of real-time tracking, multiple agencies

World Bank Logistics Performance Index (LPI 2023): India ranked 38th — improved from 54th (2014) but still far from logistics leaders.

6.2 National Logistics Policy 2022

Launched: September 2022 | Nodal Ministry: DPIIT

Key elements:

1. Unified Logistics Interface Platform (ULIP): Single digital window integrating 38 different government systems (customs, railways, ports, road transport). Real-time visibility across supply chains.
2. EASE of Logistics Services (ELOG): Framework for services improvement
3. System Improvement Group (SIG): Quarterly review mechanism
4. PM Gati Shakti Integration: All logistics infrastructure mapped on GIS platform

Targets:

• Reduce logistics cost from 13% to 8% of GDP by 2030
• Improve LPI ranking from 38 to top 25 by 2030
• Create 10 million new logistics jobs by 2030

6.3 PM Gati Shakti National Master Plan (2021)

India's most ambitious infrastructure coordination mechanism:

• Digital GIS-based platform integrating satellite imagery, infrastructure data, environmental restrictions
• 16 ministries on one platform — roads, railways, aviation, shipping, oil, gas, telecom, textiles, mines, etc.
• Enables holistic planning: if a road project disrupts a natural gas pipeline, GIS layer shows it upfront
• Five industrial corridors mapped; greenfield projects planned with multi-modal access from inception

Impact: Project execution timelines reduced from 8–10 years to 4–5 years; Rs 20 lakh crore+ in projects tracked on platform (2024)

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