Mulling National Logistics Law:

News:
  • The Commerce Ministry is considering replacing the Multi-Modal Transportation of Goods Act (MMTG) with a full-fledged national logistics law.
  • Aim: To promote growth of the logistics sector.
More about the Portal:
  • National Logistics Efficiency and Advancement Predictability and Safety Act (NLEAPS) is under consideration.
  • NLEAPS tends to define various participants of the logistics space and create a light regulatory ecosystem.
Background:
  • Logistics Sector comprises of industrial parks, warehouses, cold storages and transportation.
  • India’s logistics sector is highly fragmented and the logistic cost is about 14% of GDP.
  • Government aims to reduce the logistics cost from the present 14% to less than 10% of GDP.
Significance of new proposed Policy:
  • The move assumes significance as high logistics cost impacts the competitiveness of domestic goods in the international market.
  • Effective implementation of the policy would help provide an impetus to trade, enhance export competitiveness, and improve India’s ranking in the Logistics Performance Index.
Posted by Jawwad Kazi on 5th Jul 2020
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