The Union Cabinet on Wednesday approved the National Logistics Policy after a key meet. The policy, which was unveiled by Prime Minister Narendra Modi last week, seeks to cut transportation costs by promoting the seamless movement of goods across the country.

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While launching the policy, the PM Modi had said that "from 13-14 percent (of the GDP), we should all aim to bring the logistics cost to single-digit as soon as possible".

Here is how the National Logistics Policy and PM-Gati Shakti will support each other. pic.twitter.com/ZVn843wTox

— Narendra Modi (@narendramodi) September 17, 2022

Also, a unified logistics interface platform (ULIP) will be developed as part of the National Logistic Policy so that different government and private agencies, shippers, and service providers are able to exchange information on a real-time basis in a confidential manner. It is one of the eight interventions proposed under the comprehensive logistics action plan.

Other interventions include the standardisation of physical assets and benchmarking service quality standards; logistics human resources development and capacity building; state engagement; export-import logistics; service improvement framework; sectoral plan for efficient logistics; and facilitation of development of logistics parks.

The Department for Promotion of Industry and Internal Trade (DPIIT) Secretary had earlier said that the policy will cut energy wastage at every step and help India achieve its COP26 targets. "The Conscious rise in use of railways and waterways will cut transportation costs," the secretary said.

"The Shipping Ministry and the FCI (Food Corporation of India) are planning to transport PDS food grain to North-East India through waterways. The aim is to meet the global benchmark of logistics cost as 8-9 percent of GDP (Gross domestic product) by 2030, compared to 13-14 percent currently," the secretary said.

Meanwhile, Subhrakant Panda, Senior VP at FICCI and MD of IMFA believes that the policy can lead to export growth of 5-8 percent. "...this policy is a combination of both macro as well as micro," he said.

(With inputs from PTI)

(Edited by : Akriti Anand)