Ease of Doing Business for MSMEs: Prime Minister Narendra Modi has lauded the union cabinet’s decision on India’s National Logistics Policy and noted that it would accelerate growth and increase the country’s participation in global trade. He tweeted on Wednesday, “Our efforts in the Logistics sector will particularly benefit our farmers and the MSME sector.”
The cabinet has approved the National Logistics Policy, which was launched by the Prime Minister last week, with an intent to reduce transportation cost and improve performance of the sector. “To ensure quick last mile delivery, end transport-related challenges, save time and money of the manufacturers, prevent wastage of the agro-products, concerted efforts were made and one of the manifestations of those efforts is National Logistics Policy”, he had said at the launch.
Information and broadcasting minister Anurag Thakur had informed the media after the cabinet meeting that the target was to place India among top 25 nations (in terms of logistics efficiency) by 2030, Financial Express had reported. The country was placed at the 44th spot in the World Bank’s Logistics Performance Index in 2018.
According to the press statement, the policy is targeted to reduce costs to a level where it will be comparable to global benchmarks by 2030.
Notably, the government had also launched PM GatiShakti – National Master Plan for multi-modal connectivity – last year to aid connectivity in various economic zones. The empowered group of secretaries (EGoS), a body that was created under the plan, will keep a track of the Logistic Policy’s implementation as well. A services improvement group will be set up to monitor projects regularly and also bridge the gap between the industry and the government.
Meanwhile, the cabinet on Wednesday also approved a production linked incentive (PLI) scheme on ‘national programme on high efficiency solar PV modules’ and modifications in the scheme for semiconductors and the display manufacturing ecosystem with a uniform fiscal support of 50 per cent of the project cost for all technology nodes.