|| SHANIWAR SAMWAD || 24-09-2022

 Much-awaited logistics policy was unveiled last week. it was declared in budget 2020, but it got delayed due to the pandemic. All details are out, but one thing which was remarkable all stakeholders from the government were present along with the commerce minister. It is a very significant change we saw in recent times.

We are used to seeing individual departments or ministry used to declare their policy or vision but it is good to see all are coming together to address the issue which is very crucial to our economy.

The policy which is formed on four pillars will reduce friction between users, logistics players, and the enforcement department as all will be able to see all their transactions as well as queries with dispute resolution.

Human development is not present in the market for small entrepreneurs as the majority of players are small enterprises.

The skill development of human resources has to be seen as a long-term investment rather than an inefficient expense.

The truck drivers are not trained rather they learn driving skills on road directly instead from any institution. This practice gives us major problems like accidents, traffic rules violations, and frequent breakdowns.

This led to a high cost of transport of goods, which is equal to 13-14% of GDP, the highest in the world.

Now, these issues will be getting addressed in the new regime, which will lead to the reduction of overall costs up to 8-9% of annual GDP. 

With this policy one aspect has to be seen from a human angle which is a major reason for credit rating loss for small entrepreneurs, even after the GST regime, the local administration not only working against the spirit of the regime but wants to make the system transparent and corruption free.

As said above 85% of players are with 1 or up to 10 nos. of a commercial vehicle with them, to make the profit they are also indulging in some wrong practice, in which more than 70% are complying with the regime but they have to face all hardship, which creates financial losses to entrepreneurs, which in

turn affect to pay their dues regularly to financial institutions. All get affected due to this, here big logistics players need to come and train their fellow entrepreneurs is required to make them compliant and make the system efficient and safe for everyone. 

A change of mindset is needed from each one to achieve larger goals.