India’s logistics sector, valued at over $160 billion, is finally getting the policy attention it deserves. As part of its strategy to enhance ease of doing business, the government is aggressively working to reduce regulatory bottlenecks that have long plagued this industry.
This blog breaks down the recent policy developments, their legal backing, and what it means for logistics operators, taxpayers, and businesses across India.
Why Logistics Sector Needed Reform
- India’s logistics cost is around 13–14% of GDP—much higher than global averages (~8%).
- Complex documentation, overlapping compliances, and state-level restrictions increase delivery delays and cost.
- Regulatory friction hurts MSMEs and exporters who rely on timely and cost-effective supply chains.
Key Government Moves to Ease Regulatory Pressure
1. Unified Logistics Interface Platform (ULIP)
- A digital backbone connecting 30+ systems across ministries.
- Enables seamless logistics data exchange and real-time tracking.
- Reduces redundant compliance and manual documentation.
2. National Logistics Policy (NLP) Implementation
- Policy introduced in 2022, now actively enforced.
- Targets reduction of logistics cost to <10% of GDP by 2030.
- Emphasis on digitisation, multimodal transport, and integrated infra planning.
3. Gati Shakti Master Plan
- GIS-based planning for better coordination across highways, railways, ports, and airports.
- Reduces project delays and duplication of approvals.
Legal & Institutional Framework Supporting This Shift
| Reform Initiative | Legal/Policy Backing |
|---|---|
| Unified Logistics Interface | Backed by DPIIT under the Digital India policy umbrella |
| Gati Shakti | Cabinet-approved initiative, integrated with PM Gati Shakti NMP |
| National Logistics Policy | MoCI and DPIIT policy document, 2022 |
| State Logistics Plans | Mandated under National Logistics Efficiency Enhancement Plan |
Businesses Can Benefit
- Faster GST Credit Cycles: Reduced transit delays mean quicker delivery and invoice matching.
- Lower Warehousing Costs: With real-time route optimisation, businesses can reduce reliance on scattered depots.
- Improved Export Competitiveness: Time-sensitive exports benefit from predictable logistics.
Subheading with Focus Keyphrase
Logistics sector reforms and their impact on compliance
- Simplified documentation reduces audit triggers under GST and Income Tax.
- Less dependency on state-wise paperwork due to centralised data systems.
- Easier integration of transport, warehousing, and invoicing—reducing cost inflation.