Recently, National Logistics Policy was launched by Prime Minister Narendra Modi. Stakeholders, businesses, and think tanks all praised the initiative. The PM Gati Shakti National Master Plan, a revolutionary strategy to boost productivity and offer seamless first- and last-mile connectivity, is where the idea originated. The goal of the policy is to "create in the nation a trusted logistics ecosystem that is technologically enabled, integrated, cost-effective, robust, and sustainable for fast and inclusive growth." A more complete, succinct, and clear vision statement could not have existed.
For supply chain management and infrastructure development, logistics has remained a weakness. The cost of logistics in India is approximately 12–13% of GDP, which is significantly higher than the cost of logistics in developed nations like Germany and the US, which are at 8% and 9.5% respectively, according to the World Bank's 2018 Logistics Performance Index (LPI), which places India at number 44. As a result, the key lies in logistics that are guided by a clear policy and framework. Currently, roadways account for about 60% of freight transportation, followed by railroads (32%), and waterways (14%). (5 percent). Comparatively, the average percentage of roads and railroads worldwide is 25 and 60 percent, respectively.
With the presence of publicly owned roads and trains, the government becomes not only a regulator but also a significant stakeholder, making the logistics sector crucial.
In general, logistics refers to the time, effort, and money spent on storing and moving a good from its point of origin to its final destination. For instance, processing and shipping costs are increased when fox nuts, or makhana, from Bhagalpur, Bihar, are shipped to Bangladesh.