India to be among top 25 countries by 2030 in Logistics Performance Index ranking: Invest India | Current Affairs | Vision IAS
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    India to be among top 25 countries by 2030 in Logistics Performance Index ranking: Invest India

    Posted 04 May 2024

    2 min read

    • Invest India highlighted that 
      • Indian logistics sector is expected to reach USD 380 billion by 2025 from USD 250 billion in 2021.
      • India aims to reduce logistics cost from 13%- 14% of GDP to 8%- 10% of GDP by 2030
    • Logistics includes transportation and handling of goods between production and consumption points, storage, value addition, and allied services.
      • Logistics infrastructure comprises of ports, Multimodal Logistics Parks (MMLPs), warehouses etc.
         
    • Advantages of Efficient Logistics Sector
      • Ensures smooth and efficient supply chain, minimizes delays and reduces lead time (time taken to complete a supply chain process), crucial for business operations.
      • Fosters economic integration by improving connectivity between regions and markets.
      • Enhance business competitiveness due to reduction in transportation, storage and distribution costs.
      • Employment generation in transportation, warehousing, distribution, and related services.
         
    • Challenges before Indian logistics sector 
      • Fragmented supply chain with numerous small and independent players.
      • Complex regulatory framework, bureaucratic procedures etc. hinders business operations
      • Lack of qualified personnel proficient in supply chain management.
      • Delays in shipments and increased costs due to lack of coordination between states
         

    Initiatives Taken to promote Logistics Sector

    • National Logistics Policy 2022 promotes seamless flow of goods across the country and improves Indian goods competitiveness in domestic and global markets.
    • MMLPs to improve the country's freight logistics sector by enabling efficient inter-modal freight movement to lower overall freight costs and time etc.
    • Logistics Efficiency Enhancement Programme (LEEP) to improve freight transport efficiency.
    • PM GatiShakti to improve logistics efficiency.
    • Tags :
    • Logistic sector
    • National Logistics Policy 2022
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