siliconindia | | June 20208ogistics policy is a mandate that determines how the processes are going to proceed. It could be a comprehensive policy covering transportation, customs, infrastructure development and trade. The provisions should create a new strategy to minimize bottlenecks in the industry. Over the past few decades, globalization has played an important role in world economic performance by increasing international and domestic trade, which is central to growth and the logistics sector is now recognized as one of the pillars of development. World Bank states reliable supply chains and logistics services efficiencies are critical for competitiveness. This is strongly associated with trade expansion and ability to attract FDI for the economic growth of the Country.The grand vision of India to be a $5 trillion economy best by 2024 is an ambitious target. Post COVID-19, it is more challenging and would need a great integrated effort by Govt and the industry together. While the economy has contracted, due to the extended COVID-19 impact, the Atmanirbhar Bharat campaign could be the major push to the Make in India programme with a right policy intervention and support to the industry. Increasing the domestic consumption with adaption to the Made in India products and services could help the economy recover at a faster pace.This pandemic has cost many countries due to the intricate supply chains and dependence of supplies from China. While there was an interest to look at alternate manufacturing hubs, many countries have started talking openly about `not made in China', the businesses in India can benefit from this coming wave of manufacturing and supply chains relocation, and to achieve all the above, we need an exceptionally large countrywide, efficient, and scalable logistics solutions supporting JIT (just in time) and always-on networks. More than 60 percent of the total freight transport in the country is on road, and the industry is extremely fragmented with 85 percent vehicle ownership is with individuals owning less than five trucks. This segment is vital to connect entire Bharat. There needs to be numerous innovations in business and technology which are country specific with Global Standards, as the solutions for Bharat could be applicable around the world. According to infrastructure, status to logistics is certainly a good move and putting the National Logistics Policy in place is a crucial need of the hour. To achieve high standards, efficiency, lower cost per unit and creating a new economy, a wholesome approach needs to be taken covering the followingInnovation Funding: Creating a Logistics Innovation Fund of Rs. 10,000 crores with a 5-year life and providing funding on equity and debit modes to support Logistics Innovations in ­ 1. Business Models ­ Market places, aggregation of resources, cross dock to provide a conduit to Inter & Intracity, Facilities and Reverse logistics. 2. Technology ­ Automation, efficient fleet design, telematics, data analytics, renewables and cold chain.Energy Policy ­ Energy Index, Fossil Fuel, Renewables Adaption1. Energy policy aiming at efficiency increase across the whole supply chain could provide self-sustenance and LNATIONAL LOGISTICS POLICY & INDIA ECONOMY By Prasad Sreeram, Co-Founder & CEO, Cogos TechnologiesCogos Technologies is a Bangalore-based logistics startup that is disrupting the intra-city logistics vertical by connecting truck vendors with businesses who want to move their cargo from one place to another.In MY opinion
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