The logistics sector is an integral part of the economy of any country. In India, the logistics industry plays a crucial role in boosting the manufacturing sector. However, dealing with numerous compliances has been a significant concern for the sector, hampering its potential for growth.
Recently, the Indian government introduced the National Logistics Policy (NLP) to address the challenges of the logistics sector. The policy aims to streamline various aspects of logistics, including transportation, warehousing, and inventory management. The aim of the National Logistics Policy is to simplify logistics, which has a positive impact on the growth of the sector and promotes the country’s economic growth.
According to Rishi Agrawal, CEO and co-founder of Teamlease Regtech, the logistics sector will benefit significantly from the National Logistics Policy.
He noted that the country is already beginning to see the benefits of the policy.
“The NLP will include four main steps, including the integration of digital systems (IDS), the unified logistics interface platform (ULIP) and the logistics facilitation and improvement systems. So some of the work is already being done, the country is already starting to reap the benefits,” he said.
Agrawal explained that a single entity in India has to deal with multiple compliances, making it difficult to run business efficiently. However, with the introduction of the National Logistics Guideline, the logistics industry can expect a more streamlined process and the burden of compliance will decrease.
The logistics industry is the backbone of India’s manufacturing sector.
“This industry is the backbone of the country’s manufacturing,” he said.
It enables the seamless movement of goods across the country, helping industries to meet their demand and supply needs.
Many sectors such as automotive, retail and e-commerce are heavily dependent on the logistics sector. Therefore, the positive effects of the National Logistics Policy will spread to various industries and further boost India’s economic growth.
Agrawal believes that the logistics sector’s contribution to the country’s gross domestic product (GDP) will increase positively as the compliance burden on the logistics sector decreases. This increase will be the result of reduced operational costs and increased efficiencies, making the logistics sector more competitive worldwide.