Centre to replace Multi-modal Transportation of Goods Act

The logistics division is also working on how to modernise and formalise logistics services and promote digitisation

Multi-modal Transportation of Goods Act, Union Ministry of Commerce and Industry, Full-fledged national logistics law, National Logistics Efficiency and Advancement Predictability and Safety Act, NLEAPS, Rail, Road transport, Sea, High logistics cost, Logistics Performance Index

The Ministry of Commerce is considering to replace the Multi-modal Transportation of Goods Act with a full-fledged national logistics law with a view to promote growth of the sector.

A National Logistics Efficiency and Advancement Predictability and Safety Act (NLEAPS) is under consideration. This law tends to define various participants of logistics space and create a light regulatory ecosystem.

Multi-modal transportation includes a combination of more than one mode of movement, such as rail, road or sea for end-to-end delivery of goods.

The logistics division is also working on how to modernise and formalise logistics services and promote digitisation in the sector, which is the key for smooth movement of goods.

The move assumes significance as high logistics cost impacts competitiveness of domestic goods in international market.

An effective implementation of the policy will help provide an impetus to trade, enhance export competitiveness and improve India's ranking in the Logistics Performance Index.

India's logistics sector is highly fragmented and the government aims to reduce logistics cost from the present 14 percent of GDP to less than 10 percent.

The sector is very complex with more than 20 government agencies, 40 partnering government agencies, 37 export promotion councils, 500 certifications and 10,000 commodities.

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Sept 2020
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