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Inter-ministerial tiff over scheme implementation holds back national logistics policy: Sources

Policymaking and implementation in logistics remain as fragmented as the sector and that’s said to be delaying an ambitious policy that aims to cut the time taken to move goods across the country, reduce inflation and boost exports.

June 28, 2021 / 03:14 PM IST
Representational Image

Representational Image

More than two years after the commerce department floated the first draft, the proposed National Logistics Policy that seeks to reduce India’s prohibitively high costs, ensure faster movement of goods and boost exports remains stuck in discussions.

Set to go to the cabinet since March, the proposed policy has been held back by the lack of final inputs from other ministries such as road transport and shipping.

While both ministries have sought more time to assess the proposals and conduct technical reviews, differences over who will run the key schemes have slowed the process, sources said. These include parts of the Bharatmala Pariyojana, the centrally sponsored and funded road and highway project, and the creation of a series of integrated logistics parks, the sources added.

After achieving ‘infrastructure’ status in 2017, the logistics sector in India is now pegged at upwards of $160 billion, with an annual growth rate of 10.5 percent, according to industry estimates.