Create aggregation points for farm & MSME items, do minimal inspections: Piyush Goyal to states

Commerce and industry minister Piyush Goyal has asked all states and Union Territories to create aggregation points for farm produce and products from micro, small and medium enterprises (MSMEs), move towards minimal inspections and truck stoppages, and establish logistics parks with truck parking and warehousing facilities.

In a letter dated November 27, Goyal also asked all states and UTs to develop state logistics plans and create cells, besides identifying the top five challenges in the logistics sector.

“In the backdrop of Aatmanirbhar Bharat- building a self-reliant India and in response to supply chain disruptions during the Covid-19 pandemic, there is now increased focus on logistics and supply chain issues,” Goyal said in the letter, a copy of which has been seen by ET.

The move is in line with the country’s aim to reduce logistics cost by 5% for users over the next five years and improve India’s ranking on the World Bank’s Logistics Performance Index to 25-30 in the next five years from 44 in 2018. The logistics cost is pegged at about 13% of the gross domestic product (GDP).

The logistics division in the commerce department plans to set up a single window or one-stop source for all approvals and clearances for setting up and operating logistics businesses that would also cater to all grievances and dispute resolution in this regard.

It is drafting the National Logistics Policy and a separate National Logistics Act to replace the existing multimodal transportation of goods law. A National Master Plan to provide multimodal connectivity across the country to reduce logistics cost and improve competitiveness of local manufacturing is also in the works.

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In the letter, Goyal also asked states and UTs to ensure first and last-mile connectivity with the National Economic Corridor by “developing a state action plan that leverages existing passenger transport infrastructure such as intra and inter-city buses and mass rapid transit system for last mile parcel distribution logistics during off-hours and off-peak hours”.

He also asked them to ensure easy availability of land and facilitative environment for conversion of land use and floor space index (FSI) relaxation for warehousing, along with sharing of freight routes to minimise idling of transport units and polluting impact of logistics.

As part of a state-logistics master plan, Goyal said a network of warehousing, transport and distribution assets would be identified.


  • Centre asks states, UTs to focus on logistics, supply chains
  • Create aggregation points for farm, MSME products, says Goyal
  • Minimal inspections, truck stoppages key to reduce costs
  • Logistics costs at 13% of GDP, aim to reduce to 10%
  • State logistics cells, master plans, nodal officers to be appointed
  • Logistics parks with truck parking, warehousing facilities
  • Easy land availability suggested
  • Centre creating single window for all nods to set up logistics businesses
  • National logistics policy, legislation, master plan in the works


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