How do PM GatiShakti NMP and the National Logistics Policy together address India's high logistics costs? Discuss the role of the proposed Integrated Transport & Logistics Authority.

For years, India's logistics cost was quoted at 13–14% of GDP. The first official estimate, a DPIIT–NCAER study, puts it at 7.97% of GDP (₹24.01 lakh crore) in 2023–24, and it finds that smaller firms pay far more [1]. To cut these costs, the PM GatiShakti National Master Plan (NMP, 2021) handles the hard infrastructure and the National Logistics Policy (NLP, 2022) handles the soft infrastructure [2].

NMP: Lowering cost through integrated physical planning

• One shared GIS platform: it has 23,493+ data layers and connects 58 Ministries and all 36 States/UTs, so projects are no longer planned in silos [3].
• Multimodal and last-mile focus: seven engines (roads, rail, ports, waterways, airports, mass transport, logistics) and schemes like Bharatmala, Sagarmala and UDAN are planned on one map [3].
• Fewer costly delays: the Network Planning Group (NPG) has screened 396 projects worth ~₹18.66 lakh crore, catching route conflicts before a project is sanctioned [3].

NLP: Lowering cost through services, processes and States

• Clear division of work: the NMP plans fixed networks, while the NLP develops logistics services [2].
• Benchmarked goal: reach the top 25 of the Logistics Performance Index by 2030 [4].
• Cooperative federalism: the LEADS index ranks States on logistics [4], and 26 States/UTs had notified their own logistics policies by 2024 [5].
• Capacity: Gati Shakti Vishwavidyalaya has trained 2.4 lakh+ officers [3].

Persisting gaps

• Screening is not building: only 198 of the 396 evaluated projects are under implementation [3], and no data is published on time or cost saved.
• Remaining gaps: infrastructure, regulatory harmonisation across States, and weak digital skills among small operators [6].
• Land is a State subject, so the NPG can advise but cannot enforce.

Role of the Integrated Transport & Logistics Authority (ITLA)

• Long-term planning: it will prepare a National Transport Master Plan with a horizon of 10+ years [3].
• Accountability: it will carry out technical appraisal and monitoring of projects costing ₹500 crore or more [3].
• Measurement: its National Transport Data Repository will combine FASTag, Vahan and GSTN e-way bill data [3]. This would allow cost reductions to be tracked in near real time, but it needs safeguards under the DPDP Act, 2023.

Together, the NMP has solved the information problem and the NLP the process problem. ITLA can now supply what is still missing: institutional authority and measurement of outcomes. If DPIIT repeats the cost study every year, with figures by firm size, and States finish their logistics policies, the plan's slogan of Gati (speed) can turn into cheaper logistics for MSMEs and greater export competitiveness.