- Significance:
- Logistics costs account for 18% of total product cost in India (vs. 8-12% in China/Europe).
- MMLPs are key to reducing these costs.
- They aggregate and distribute freight efficiently.
- They enable multi-modal transportation, using cheaper modes like rail/waterways.
- They reduce transit time, lowering inventory costs.
- They lead to optimal utilization of transport assets.
- This makes Indian products more competitive.
- The National Logistics Policy 2022 aims to reduce logistics cost to global benchmarks.