**Executive Summary:**
This document addresses a question in the Lok Sabha regarding the logistics sector's role in India's economy and the status of the National Logistics Policy (NLP). It clarifies the government's perspective on the logistics sector, its contribution to the economy, and the steps taken to improve logistics efficiency, including the formulation of the NLP in 2022 and the development of logistics parks, including two in Andhra Pradesh.
**Key Points / Main Content:**
* **Logistics Sector Importance:**
* An efficient logistics sector is crucial for overall economic growth.
* The government acknowledges the importance of addressing supply chain bottlenecks.
* **Economic Contribution:**
* The contribution of the logistics sector to GDP is not compiled.
* The Gross Value Added (GVA) for sectors related to logistics is provided for 2021-2022, 2022-2023 and 2023-2024. These sectors include:
* Railways
* Road Transport
* Water Transport
* Air Transport
* Services incidental to transport
* Storage
* **National Logistics Policy (NLP):**
* NLP was formulated in September 2022.
* PM GatiShakti National Master Plan (NMP) was launched in October 2021 to develop integrated infrastructure and network planning.
* NLP 2022 aims to reduce logistics costs and enhance efficiency through improvements in services, processes, digital systems, regulations, and human resources.
* Initiatives include Sectoral Plan for Efficient Logistics (SPEL), Logistics Ease Across Different States (LEADS), Service Improvement Group (SIG), and Unified Logistics Interface Platform (ULIP).
* **Logistics Parks:**
* The NLP focuses on developing logistics parks to increase efficiency and reduce costs.
* 35 locations have been identified for Multimodal Logistics Parks.
* Two locations are in Andhra Pradesh: Visakhapatnam and Ananthapur.
* **Tracking and Efficiency:**
* The Logistics Data Bank (LDB) portal tracks 100% of India's containerized EXIM cargo.
* The LEADS assessment system encourages states to reduce logistics costs and improve efficiency.
* **State Logistics Policies:**
* States are formulating and implementing State Logistics Policies aligned with the NLP.
* Twenty-seven (27) States/UTs have formulated and notified their respective Logistics Policies.
**Impact Analysis:**
* **Government of India:**
* *Impact:* Responsible for policy formulation, implementation, and monitoring of the logistics sector.
* *Action Required:* Continue to develop and refine policies and infrastructure to support logistics efficiency.
* **State Governments/UTs:**
* *Impact:* Responsible for aligning state-level policies with the National Logistics Policy.
* *Action Required:* Formulate and implement State Logistics Policies aligned with the NLP, and participate in the LEADS assessment system.
* **Logistics Industry Stakeholders (e.g., transporters, warehouse operators, service providers):**
* *Impact:* Affected by changes in policies, regulations, infrastructure, and technology within the logistics sector.
* *Action Required:* Adapt to new policies and technologies, and leverage initiatives like ULIP and LDB to improve efficiency and reduce costs.
* **Exporters and Importers:**
* *Impact:* Benefit from reduced logistics costs, improved efficiency, and better tracking of cargo.
* *Action Required:* Utilize platforms like LDB to track shipments and optimize supply chain operations.
Key Entities Referenced
National Logistics Policy: A policy formulated in September 2022 aimed at reducing logistics cost and enhancing logistics efficiency of the country.
PM GatiShakti National Master Plan: A national master plan launched in October 2021 for integrated infrastructure and network planning.
Andhra Pradesh: A state in India where logistics parks are proposed (Visakhapatnam and Ananthapur).
Ministry of Commerce and Industry: The government ministry responsible for matters related to commerce and industry.
Logistics Data Bank: A portal developed for tracking and tracing 100% of India's containerized EXIM cargo.
Logistics Ease Across Different States: An assessment system (LEADS) to sensitize states towards reducing logistics cost and improving logistics efficiency.
Ministry of Road Transport and Highways: The government ministry that has identified 35 locations for development of Multimodal logistics parks.
Gross Domestic Product: A measure of the economic activity of a country. Contribution of logistics sector to GDP is not compiled.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE
LOK SABHA
UNSTARRED QUESTION NO. 1393.
TO BE ANSWERED ON TUESDAY, THE 29TH JULY, 2025.
LOGISTICS SECTOR AS A CRUCIAL ENABLER
[
1393. DR. C M RAMESH:
Will the Minister of COMMERCE AND INDUSTRY be pleased to state:
वाणिज्य एवं उद्योग मंत्री
(a) whether it is not true that to make India a US $ 5 trillion economy, logistics sector is
a crucial enabler, if so, the details thereof;
(b) whether it is also not true that logistics sector is contributing 15% to GDP, if so, the
details thereof;
(c) the manner in which the Government looks at absence of National Logistics Policy
(NLP) which is critical for supply chain bottlenecks;
(d) the steps being made to frame NLP; and
(e) the status of logistic parks proposed in the country, particular to Andhra Pradesh?
ANSWER
वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री (श्री णिणिन प्रसाद)
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY
(SHRI JITIN PRASADA)
(a) &(b): An efficient logistics sector is essential and crucial enabler for the overall growth
of the economy. Contribution of logistics sector to the Gross Domestic Product
(GDP) is not compiled. However, Gross Value Added (GVA) for the sectors related
to logistics for three years is given below:
(Value in Rs Crore)
At current prices
S.No. Sector
2021-2022 2022-2023 2023-2024
1 Railways 1,45,500 1,62,480 1,78,709
2 Road Transport 6,67,974 7,27,638 7,73,646
3 Water Transport 19,210 22,143 22,496
4 Air Transport 11,114 18,140 33,102
5 Services
incidental to 1,25,990 1,51,928 1,83,437
transport
6 Storage 21,586 24,223 28,210
7 Total GVA (All 9,91,374 11,06,552 12,19,600
Sectors)
(Source: National Accounts Division, M/o Statistics and Programme Implementation)(c) & (d): National Logistics Policy (NLP) was formulated in September 2022. Before that
in October 2021, PM GatiShakti National Master Plan (NMP) was launched. While
development of integrated infrastructure and network planning is envisaged to be
addressed through the PM GatiShakti National Master Plan, for efficiency in
services (processes, digital systems, regulatory framework) and human resource,
the National Logistics Policy 2022 provides a comprehensive agenda for
development of entire logistics ecosystem to reduce logistics cost and enhance
logistics efficiency of the country.
Various initiatives under National Logistics Policy aims to create a cost-efficient,
resilient, and sustainable logistics ecosystem. Focus areas such as Sectoral Plan
for Efficient Logistics (SPEL), Logistics Ease Across Different States (LEADS),
improving the ease of doing business through Service Improvement Group (SIG),
efforts towards more digitization of process and documentation which helps in
tracking and tracing though Unified Logistics Interface Platform (ULIP), etc. are
aimed to strengthen existing supply chain networks for both domestics and export
driven industries. For tracking and tracing 100% of India’s containerized EXIM
cargo, the Logistics Data Bank (LDB) portal, has been developed. Through the
LEADS assessment system, States are sensitized towards reducing logistics cost
and improving logistics efficiency. Further, States are formulating and
implementing State Logistics Policy which are aligned with the National Logistics
Policy. Twenty Seven (27) States/UTs have formulated and notified their
respective Logistics Policies
(e): The National Logistics Policy 2022 focuses on the development of logistics parks
in India to increase India’s logistics efficiency and reduce logistics costs. For
Example, Ministry of Road Transport and Highways has identified 35 locations for
development of Multimodal logistics parks which are at different stages of
development. Out of 35 locations, 02 are in the State of Andhra Pradesh viz
Visakhapatnam and Ananthapur.
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