How NLP (National Logistic Policy) aims to reshape Logistic Sector

By Mr. Naresh Sharma

India has introduced the PM GatiShakti National Master Plan (NMP), a forward-thinking program aiming at improving logistics efficiency and lowering costs, in recognition of the crucial role that logistics plays in economic development. Logistics is the backbone of a thriving economy. It ensures goods move seamlessly from one place to another, reducing costs, improving supply chains, and driving economic growth. So now, we will explore how a National Logistics Policy (NLP), exemplified by the PM GatiShakti National Master Plan (NMP) in India, aims to reshape the logistics sector by focusing on infrastructure development, cost reduction, supply chain improvement, technology adoption, regional development, and GDP growth.

  1. Infrastructure Development: Building the Road to Efficiency

The importance of infrastructure in logistics cannot be overstated. The arteries through which commodities move include roads, railways, ports, and airports, and the state of these infrastructures directly affects connectivity and transportation costs. The PM GatiShakti NMP is aware of this important element and works to build a strong infrastructure network that guarantees first- and last-mile connections.

The strategy advocates for the integration of present and future infrastructure projects from several agencies. It hopes to achieve this in order to get rid of bottlenecks and build a seamless, integrated transportation system. This interconnectedness will not only reduce transportation costs but also enhance the efficiency of logistics operations.

  1. Reducing Costs: A Win-Win for Businesses and Consumers

Cost reduction and logistics efficiency go hand in hand. A key initial phase in making logistics operations more affordable for businesses is the PM GatiShakti NMP’s focus on reducing logistics expenses. Businesses may distribute resources more effectively and increase their profit margins when logistics expenses are reduced. Additionally, lower logistical costs may result in more affordable prices for consumers, which would be advantageous for the entire economy.

  1. Improved Supply Chain Management: The Backbone of Efficiency

A well-implemented logistics policy encourages the adoption of advanced supply chain management practices. This includes better inventory management, demand forecasting, and distribution strategies. By minimizing waste, improving order fulfillment, and speeding up delivery times, efficient supply chain management directly contributes to logistics efficiency.


  1. Technology Adoption: Embracing the Digital Boundary

In the modern era, technology adoption is crucial for logistics efficiency. GPS tracking, warehouse management systems, and digital documentation have become indispensable tools. These technologies enhance the efficiency and transparency of logistics operations.

For example, GPS tracking allows real-time monitoring of shipments, reducing the risk of theft and loss. Warehouse management systems optimize storage space and streamline order fulfillment. Digital documentation minimizes paperwork, reducing administrative hassles and errors.

  1. Regional Development: Encouraging Economic Growth

A national logistics policy can be a catalyst for regional development. The NMP encourages economic growth and job creation by encouraging the development of industrial clusters and logistical hubs in various locations. These logistics hubs can operate as engines for economic growth by luring in venture capital and firms.

Additionally, by spreading out economic activity throughout multiple regions, the NMP can lessen regional inequalities and support a growth trajectory that is more evenly distributed and inclusive.

  1. GDP Growth: Fueling the Nation’s Prosperity

The impact of logistics efficiency on a country’s GDP cannot be overstated. A thriving logistics sector contributes significantly to economic growth. As logistics companies expand, create jobs, and generate revenue, they indirectly stimulate economic growth.

The PM GatiShakti NMP’s holistic approach to logistics efficiency is poised to drive GDP growth, ultimately benefiting the entire nation.

Adapting to the Unique Challenges and Opportunities

The success of any logistics policy hinges on its adaptability to a country’s unique economic and logistical challenges and opportunities. In the Indian context, with its vast and diverse landscape, the NMP recognizes the need for flexibility. It aims to develop a flexible framework for policy that can adapt to changing conditions.

For instance, the plan acknowledges that logistics challenges vary across regions. The logistical needs of the northern mountainous regions are very different from the southern coastal areas. The NMP seeks to customize responses to these particular problems, making sure that no region is left behind.

Moreover, the NMP recognizes the importance of stakeholder collaboration. It involves various agencies, both at the central and state levels, to ensure a coordinated and unified approach to logistics infrastructure development. By fostering collaboration, the NMP can tap into the expertise and resources of different stakeholders, leading to more efficient and cost-effective solutions.


A well-crafted National Logistics Policy has the power to reshape a country’s logistics sector by improving infrastructure, reducing costs, enhancing supply chains, embracing technology, fostering regional development, and driving GDP growth. The PM GatiShakti National Master Plan in India exemplifies this transformative approach, aiming to create a logistics landscape that is efficient, competitive, and adaptable to the changing needs of the economy.

As the world becomes increasingly interconnected and reliant on logistics, the role of these policies in shaping the future cannot be overstated. They are the blueprint for a logistics sector that not only serves businesses but also enhances the overall quality of life for citizens by ensuring goods reach their destinations promptly and affordably. Ultimately, a well-executed NLP paves the way for a prosperous and sustainable future.


(The author is Mr.Naresh Sharma, Managing Director,  CCI Group, and the views expressed in this article are his own)

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