“The implementation of National Logistics Policy with a single-window has yielded several far-reaching benefits for trade facilitation and economic development of the nation.” Pushpank Kaushik
In today’s interconnected global economy, India’s trade and logistics industry plays a critical role in facilitating the movement of goods across borders. As per the Ministry of Ports, Shipping, and Waterways, India’s total cargo handled had increased to 817.98 during April-March 2023-24 million tonnes from 783.62 MMT handled during April-March 2022-23. During April-March 2023-24 cargo handled at Major Ports increased by 4.38% as compared to April-March 2022-23. However, the industry still faces numerous challenges that impact its efficiency and profitability. Major challenges faced by the shipping and logistics industry are global trade tensions and geopolitical instability, increasing pressure to reduce carbon emissions, labour shortages, and skill gaps with rapid digitization, etc.
Recognizing the significance of logistics in trade facilitation, the government of India introduced the National Logistics Policy in September 2022, coupled with a single-window system to revolutionize trade and economic development along with seamless logistics operations. It primarily serves as a strategic roadmap for enhancing the efficiency, resilience, and competitiveness of India’s logistics infrastructure.
Significance of National Logistics Policy
The implementation of a single window for seamless logistics under the National Logistics Policy will help in the following ways:
Consolidating Trade Documents & Cross Border Trade: NLP is working towards consolidating all trade-related requirements into a single digital platform, where EXIM businesses can expect simplified procedures, reduced paperwork, and faster clearances. This further facilitates seamless cross-border trade by enabling the electronic exchange of trade data between trading partners, customs authorities, and other regulatory agencies.
Real-time Tracking: Businesses can track and trace their shipments in real-time through advanced technologies implemented into the shipping routes, ensuring timely delivery and reducing the risk of loss or damage at each stage, leading to enhanced efficiency and reduced operational costs.
Enhanced Transparency and Accountability: The adoption of digital platforms and electronic data interchange through a single window fosters greater transparency and accountability in trade operations, minimizing the scope for corrupt practices, promoting fair trade practices, and strengthening regulatory oversight.
Benefits of NLP Implementation and its Impact
The implementation of National Logistics Policy with a single-window has yielded several far-reaching benefits for trade facilitation and economic development of the nation. Improved efficiency, streamlined operations, digitization, and transparency have lowered the logistics costs of international trade, and improved regulatory compliances ultimately leading to increased exports. It has also helped to promote stable coordination and movement of goods in cross-border trade operations.”
This has positively impacted stakeholders from various sectors including transportation, infrastructure, manufacturing, logistics infrastructure developers, port authorities, and government agencies. The improved infrastructure has facilitated smoother movement of goods, reduced transit times, and enhanced connectivity, thereby benefiting all parties involved in the logistics and supply chain ecosystem.
Challenges and Opportunities
While the NLP and the single window offer potential benefits, some challenges need to be addressed. Once the challenges are rightly addressed, developing and maintaining a robust single-window platform with technological expertise and investment will smoothen the process facilitating cost reductions, and enhancing efficiency, and ease of operations. Stakeholders can enjoy maximum returns and benefits with time once the new framework is successfully implemented.
The effective implementation of a single-window NLP can make India a more attractive destination for both domestic and international trade. Through proactive policy measures and collaborative efforts, India can capitalize on the transformative power of logistics modernization to unlock new trade opportunities and propel itself to become the logistics powerhouse of the globe.
By Pushpank Kaushik, CEO & Head of Business Development (Subcontinent, Middle East and SouthEast Asia) of Jassper Shipping
