States must prioritize state-specific logistics policies to meet development aspirations: Ministry of Commerce Report

The Logistics Division of the Ministry of Commerce has emphasized the need for States and Union Territories (UTs) to prioritize the development of State-specific logistics policies to achieve their developmental aspirations.

A recent report by the division highlighted the critical role of the logistics sector in driving economic growth and enhancing India’s global competitiveness.

It said “To meet their development aspirations, States and UTs must prioritize initiatives towards action agenda including development of State-specific logistics policies with clearly defined timelines”

According to the report, the logistics sector plays a vital role in boosting the economic efficiency of India and its constituent States and UTs. To meet their goals, the report recommended that States and UTs focus on creating logistics policies tailored to their specific needs, with clear timelines for implementation.

The report also called for establishing robust institutional frameworks to ensure coordinated execution and adopting IT-enabled solutions such as real-time cargo tracking and automated processes to streamline operations.

Workforce skill development and incentivizing green logistics practices were also highlighted as urgent areas requiring attention.

The report suggested fast-tracking initiatives in these areas to address capacity gaps. States and UTs should aim to set measurable goals with well-defined Key Performance Indicators (KPIs) and timelines for reducing logistics costs, increasing the share of rail freight, and promoting the adoption of electric vehicles (EVs).

The report encourages leveraging digital platforms like the Unified Logistics Interface Platform (ULIP) to enable seamless data sharing and improve coordination among stakeholders.

The report said “The promotion of multi-modal transport systems, backed by strategic investments in infrastructure and technology, must be aligned with measurable outcomes to reduce logistics costs and environmental impact”.

Simplifying regulatory frameworks, allocating dedicated funds, and adopting real-time monitoring tools are key measures to overcome implementation challenges.

Additionally, the report added that States and UTs focus on regional customization efforts to maximize benefits. Coastal States should prioritize port modernization and export-import (EXIM) trade, while North-Eastern States should work on enhancing cross-border connectivity. Landlocked States should focus on developing multimodal logistics hubs.

By implementing these actionable steps, the report envisions a transition toward a more efficient, sustainable, and globally competitive logistics ecosystem.

It stresses that achieving these goals will not only benefit individual States and UTs but also contribute to India’s overall growth and competitiveness in the global market.