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Drug industry welcomes National Logistics Policy to bring down logistics cost to single digit level
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Laxmi Yadav, Mumbai
September 24 , 2022
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The drug industry has welcomed the National Logistics Policy (NLP) launched by the Union government aiming to reduce the cost of logistics to single digit levels from 13-14 per cent of the gross domestics (DGP) product of the country.
The NLP launched by Prime Minister Narendra Modi on September 17 is aimed at easing the movement of goods and boosting the trade sector in the Indian economy. The goal of this policy is to make the logistics industry more efficient and lower its costs. The strategy aims to boost economic growth, provide employment opportunities, and make Indian products more competitive in the global market.
The new logistics policy has four features: Integration of Digital System (IDS); Unified Logistics Interface Platform (ULIP); Ease of Logistics (ELOG); and System Improvement Group (SIG).
Under the IDS, 30 different systems of seven departments are integrated – including data from the road transport, railways, customs, aviation and commerce departments. Unified Logistics Interface Platform (ULIP) will ensure shorter and smoother cargo movement and will enable the exchange of information confidentially on a real-time basis. Similarly, a new digital platform Ease of Logistics Services (E-Logs) has also been started for industry associations to resolve issues by reaching out to the government. The System Improvement Group will monitor all logistics-related projects regularly.
Establishing the NLP will support the Prime Minister’s Gati Shakti initiative and complementarity. The Gati Shakti Programme's goal is to implement infrastructure connectivity, including roadways and railways projects across the nation, in a coordinated manner.
Said Sudarshan Jain, secretary general, Indian Pharmaceutical Alliance (IP Alliance), “NLP will usher a transformation in the country's logistics ecosystem, increasing the efficiency across supply chains. It will reduce the cost of logistics from the existing 13-14 per cent to par with other developed countries. The policy aims to facilitate quick last-mile delivery, resolving transport-related issues. This will save manufacturers’ time and money thus increasing availability of quality drugs at affordable prices.”
Chiming in with him, Amit Chawla, member, pharma wing of Laghu Udyog Bharati said “The government’s efforts in the logistics sector will benefit MSME sector. The backbone of India's foreign trade is logistics. The high logistics cost reduces the competitiveness of domestic products in the global market. The NLP is a significant step towards reducing logistics cost. Pharma MSMEs which export low value goods in high volume will benefit from reduced logistics cost. The data driven decision support mechanism proposed by NLP will bring efficiency in the logistics ecosystem.”
Chawla said “NLP aims to facilitate setting up of multi-modal logistics parks (MMLPs). This will ensure quick last-mile connectivity, and improve the supply chain. This will spur the growth of export-import, manufacturing, cold storage, warehouses and industries.”
In a ministry of commerce and industry survey last year, titled ‘Logistics Ease Across Different States’, Gujarat, Punjab, and Haryana were ranked the top three states. The parameters included were the quality of road and railways infrastructure, road freight rates, quality of warehousing infrastructure, etc. The survey suggested that states should focus on areas such as developing sector-specific skilling infrastructure and streamlining logistics-related approval and clearance processes.
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