Maarg Manthan · Topic 19.6

National Logistics Policy

Current Affairs & Government Schemes › National Missions and Flagship Programmes · Topic 19.6

The National Logistics Policy is a framework launched by Prime Minister Narendra Modi on 17 September 2022 to cut the cost of moving goods and to make Indian logistics efficient, integrated and technology-led. It is led by the Logistics Division of the Department for Promotion of Industry and Internal Trade in the Ministry of Commerce and Industry. The policy aims to bring India's logistics cost in line with global benchmarks and to place India among the top 25 countries on the World Bank Logistics Performance Index by 2030. It has four main tools: the Unified Logistics Interface Platform, Ease of Logistics, the Services Improvement Group and the Comprehensive Logistics Action Plan.

6 min read · UPSC Prelims · Current Affairs & Government Schemes · National Missions and Flagship Programmes

At a Glance

Launched 17 September 2022
Nodal body Logistics Division, DPIIT, Ministry of Commerce and Industry
Target Top 25 in the Logistics Performance Index by 2030
Cost aim Bring logistics cost to global benchmarks
Main tools ULIP, ELOG, SIG, CLAP
Exam link UPSC Prelims, Current Affairs and Government Schemes: National Missions and Flagship Programmes

Where Does It Fit?

This topic shows the trade side of infrastructure planning. It works together with PM Gati Shakti, which supplies the planning map, while the policy sets the rules, digital systems and targets for services. Previous topic: Civil Services Capacity Building Outlay Rs 510.86 crore…">Mission Karmayogi (Civil Services Capacity Building). Next topic: Vibrant Villages Programme (Border Villages Development).

What Are the Components of the National Logistics Policy?

Component	What it does
Unified Logistics Interface Platform (ULIP)	A digital platform that links data of ministries such as roads, railways, shipping, aviation and customs so that firms get one interface for cargo information
Ease of Logistics (ELOG)	A platform for industry to raise issues with the Government. Issues are taken up by a Services Improvement Group
Services Improvement Group (SIG)	A group chaired by the Additional Secretary, Logistics, that tracks projects and issues relating to logistics services across ministries
Comprehensive Logistics Action Plan (CLAP)	A plan with eight action areas, such as integrated digital systems, standardisation of assets, skills and sector-specific plans
State engagement	States are asked to prepare their own logistics policies in line with the national policy
Sector plans	Plans for efficient movement of goods such as agri produce, pharma, steel and cement

What Are the Targets and Why Do They Matter?

Logistics Performance Index: a World Bank index that ranks countries on customs, infrastructure, shipments, tracking, quality and timeliness. India stood 38th out of 139 countries in the 2023 edition, up from 44th in 2018
Policy targets: bring down the cost of logistics to global benchmarks by 2030, improve the Logistics Performance Index ranking to the top 25, and create a data-driven decision support system
Cost estimates: the older estimate was 13 to 14 per cent of GDP. A 2023 study by the National Council of Applied Economic Research, as cited by the Government, put the figure at about 7.8 to 8.9 per cent for 2021-22. Methods differ, so questions should be read carefully
Multimodal Logistics Parks: large hubs that combine road, rail and in some cases water links, with a plan for 35 parks under the Bharatmala Pariyojana
Dedicated Freight Corridors: separate rail lines for freight in the eastern and western corridors, which shorten transit time and take freight off passenger lines
Digital tools: e-way bills, FASTag, and customs tracking tools are part of the wider system
Skill development: the plan includes skill and training for logistics staff
Convergence: the policy depends on ministries of roads, railways, shipping, civil aviation and commerce working together

What Else Should You Remember?

Gati Shakti link: the policy and the planning plan run together, as in Gati Shakti National Master Plan (Cross-Sectoral Infrastructure) and as in PM Gati Shakti Digital Platform
Modal mix: India moves a larger share of freight by road than many large economies, and the policy aims to shift towards rail and waterways, which are cheaper per tonne-kilometre
Warehousing: a gap in modern, standard-size warehouses and cold chains raises costs, especially in agri and pharma supply chains
Coastal shipping and inland waterways: Sagarmala and the National Waterways programme are meant to cut costs by using water routes
Data issue: before ULIP, firms had to deal with separate government systems for different modes
Sector impact: exports are sensitive to logistics cost, so the policy supports competitiveness in trade
Coordination: since logistics falls in the domain of many ministries and states, coordination is the main problem and the mechanism of the SIG is meant to address it
Criticism: the policy is a framework and has no statutory force. Results depend on states, on infrastructure spending and on private investment
Hedged status: reported progress includes more than 30 digital systems linked in ULIP, but exact numbers change with updates
Latest index: the 2023 index is the latest edition known to this page. A newer edition could change the rank quoted here

Why Does It Matter for the Exam?

Date and body: 17 September 2022 and DPIIT under the Ministry of Commerce and Industry
Components: ULIP, ELOG, SIG and CLAP, with their expansions
LPI rank: 38th of 139 in 2023, and the target of top 25 by 2030
World Bank index: the Logistics Performance Index is a World Bank index and not an IMF or WTO index
Common errors: mixing the Services Improvement Group and Empowered Group of Secretaries, or calling the policy a statute

As an analytical point, high logistics cost reduces export competitiveness. The policy offers a framework, but results come from physical capacity on rail and waterways, standard warehouses and honest data on cost, so a clear and agreed measure of logistics cost is needed to track progress.

Why Is This Topic Important?

Trade Competitiveness of exports
Facts Components and index rank
Infrastructure Link with Gati Shakti

What Came Next?

The next topic covers the Vibrant Villages Programme for border areas. Next topic: Vibrant Villages Programme (Border Villages Development).

Key People and Terms

ULIP Unified Logistics Interface Platform
ELOG Ease of Logistics
SIG Services Improvement Group
CLAP Comprehensive Logistics Action Plan
LPI Logistics Performance Index
MMLP Multimodal Logistics Park

Exam Corner

Points to Remember

Launched 17 September 2022.
Nodal: DPIIT, Commerce Ministry.
Target: top 25 LPI by 2030.
India 38th in LPI 2023.
Four tools: ULIP, ELOG, SIG, CLAP.

Do Not Confuse With

National Logistics Policy and Gati Shakti A policy on services and data versus a planning platform for projects
ULIP and ELOG Data interface versus grievance forum
LPI and Ease of Doing Business Two different World Bank products with different coverage

Memory Hook

ULIP shares, ELOG hears, SIG tracks, CLAP plans.

Mains Angle

Questions ask how the policy can lower costs and boost exports. These points give a balanced frame.

Gains Lower cost, faster transit, better data
Challenges Fragmented authority, modal imbalance, states
Way forward Shift to rail and water, warehouses, common cost measure

A Question You May Face

An original practice question, not a past paper question.

“Analyse the objectives of the National Logistics Policy and discuss how it can improve the competitiveness of Indian exports.”

How to Answer

Problem High and uneven logistics cost.
Policy ULIP, ELOG, SIG, CLAP.
Impact Cost, time, exports.
Challenges Modal mix, coordination.
Way Rail, water, data, states.

GS Relevance

Prelims: launch, components, targets. GS Paper 3: infrastructure, logistics, trade, investment models and industrial policy.

Frequently Asked Questions

What is the National Logistics Policy?

The National Logistics Policy is a framework launched on 17 September 2022 to cut logistics costs and improve efficiency in India. The Logistics Division of the Department for Promotion of Industry and Internal Trade leads it. It sets targets of global-level costs and a top 25 Logistics Performance Index rank by 2030.

What is ULIP under the National Logistics Policy?

ULIP stands for Unified Logistics Interface Platform. It is a digital platform that connects data of ministries such as roads, railways, shipping, aviation and customs, so that businesses can access cargo and vehicle information through one interface, which reduces paperwork, delay and the cost of dealing with many separate systems.

What do ELOG, SIG and CLAP mean?

ELOG is Ease of Logistics, a platform where industry raises issues with the Government. SIG is the Services Improvement Group that tracks and resolves such issues across ministries. CLAP is the Comprehensive Logistics Action Plan, which lays out eight action areas such as digital systems, standardisation and skills for the sector.

What is India's rank in the Logistics Performance Index?

India ranked 38th among 139 countries in the World Bank Logistics Performance Index of 2023, up from 44th in 2018. The National Logistics Policy aims to take India into the top 25 by 2030. A newer edition could change this figure, so candidates should check the latest release.

How does the National Logistics Policy link with Gati Shakti?

PM Gati Shakti is a planning platform that coordinates infrastructure projects on a common digital map, while the National Logistics Policy sets targets and builds digital and service systems for moving goods. Both are led by the same department and together aim to lower logistics costs and improve trade competitiveness.

PYQ Practice — Statement Analysis

1 The National Logistics Policy was launched in September 2022.

True

The launch date was 17 September 2022.

2 The Logistics Performance Index is published by the International Monetary Fund.

False

It is published by the World Bank.

3 ULIP stands for Unified Logistics Interface Platform.