National Logistics Policy 2022

What is it, Why is it launched and How will it work?

National Logistics Policy 2022

In an emerging economy - India, when any product is manufactured and a customer buys it from a shop, the logistical cost on average accounts for up to 14%. In developed economies, for example, in Germany, it is up to 8%. The National Logistics Policy has been launched to reduce the cost of logistics and bring it down to the single digit as soon as possible.

What is the National Logistics Policy 2022?

Objectives of the National Logistics Policy 2022

Why is there a need to reorganize India’s Logistics Sector?

More than 22 million people are employed in the logistics sector in India and the growth rate is going to go up every year, courtesy of the technological developments in the logistics sector. A simple example would be customers ordering almost anything through eCommerce websites and mobile apps where they get their orders delivered to them at their doorstep on the same day or the next day after placing the order.

Apart from sustainability and the effects on the environment, there are two main challenges for which the National Logistics Policy has been formulated that need to be addressed in the logistics industry of India - Services and Costs. Due to the lack of reliable services and high logistics costs, India’s logistics sector is considered to be one of the least efficient.

It is a policy formulated to address the cost of logistics and inefficient logistics services. The PM GatiShakti, also known as the National Master Plan for multi-modal connectivity which was introduced in the previous year, was the first crucial step.

The national logistics policy mainly consists of four dimensions:

How does the National Logistics Policy help in reorganizing the Logistics Sector?

The National Logistics Policy has 4 different dimensions that help us in understanding the framework behind it:  

1. CLAP - Comprehensive Logistics Action Plan with Integration of Digital System.

•  IDS (Integrated Digital System) - Create a unified logistics interface system to link multiple data sources and extend cross-sector use cases for logistics service providers.

•  Standardizing physical assets and bench-marking service quality standards - Improve ease of doing business by enhancing interoperability and minimizing handling risks through standardization of physical assets and bench-marking of service quality standards in logistics.

•   Logistics human resource development and capacity building.

•   Improving EXIM (Export-Import) logistics.

•   Sectoral plans to enhance the efficiency of logistics.

•   Development of Logistics Parks.

•   Implementing Warehousing standards.

2. ULIP - Unified Logistics Interface Platform

It is an Open-source platform to connect logistics providers with software providers to enhance the ease of the logistics process by developing mobile apps with a user-friendly interface for the customer or end user.

ULIP consists of three layers:

Integration Layer - Facilitates delivery of solutions and services, Modular application with APIs, Data Exchanges and Interoperability.

Governance Layer - Laws and rules governing the logistics ecosystem.

Presentation Layer - Encouraging Private Sectors to develop apps for customers or end users with a user-friendly interface. Software providers can showcase their technological advancements that would help facilitate a smooth and efficient process.

The Integration layer and Governance layer are developed by the Government. User-friendly mobile apps are to be created in the presentation layer using which the other two layers will be used effectively to authenticate information such as vehicle and driver details, track the consignment, optimized route planning, in-time update of the consignment, reduces a lot of paperwork with simple clicks, efficient Inventory Management. 

3. ELogs - Ease of Logistics

A single portal to facilitate time-bound resolutions of user issues and feedback such as:

4. SIG - System Improvement Groups

This is a monitoring and coordination mechanism for unresolved customer issues regarding services, processes, and documentation, and also improving the user interface.


This National Logistics Policy is just a start and implementing it is the actual progress where No Code platforms will play a crucial role in the Unified Logistics Interface Platform for the development of mobile apps helping in the faster and more effective implementation to make the Logistics sector in India become efficient.

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