Getting to grips with logistics cost

As India focuses on reducing the cost, it is important to get the numbers right

In 2018, a logistics performance index prepared by the World Bank ranked India at 44. The top five were Germany, Sweden, Belgium, Austria and Japan. China held the 26th spot. It is around that time that serious discussions began in India about addressing the debilitating impact of logistics on its global competitiveness. This led to the announcement of a National Logistics Policy (NLP) in September 2022.

The NLP aims to reduce logistics cost through the implementation of a five-pronged strategy. One, the share of the railways is to be pushed up from the current 28 per cent to 40 per cent.