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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.