India’s logistics market is expected to grow from $216 billion (FY2020) to $365 billion (FY2026). The current market share of organised players is only $7 billion (3.5%). With the introduction of NLP, there is tremendous scope for growth and expansion of market share.
In September 2022, the Government of India launched the National Logistics Policy (NLP) with a detailed plan for the overall development of India’s logistics ecosystem. Its intent is to develop a tech-enabled multi-modal infrastructure for cost-effective and sustainable logistics.
NLP is expected to reduce the logistics costs in India from the current 13%-15% to single digits. In the developed world, logistics costs are around 8%-10%. NLP aims to put India at par with the developed world in terms of logistics costs. The lower costs will make India’s domestic logistics efficient and India’s exports competitive. The new policy aims to improve India’s Logistics Performance Index (LPI) by making the country rank among the top 25 economies by 2030.
NLP aims to digitise a lot of appl...