The government of Tamil Nadu recently released its logistics policy in 2023, which included objectives like allowing a strong logistics infrastructure growth. The desired results include a decrease in logistics costs and increased private participation, which are supported by initiatives like fiscal incentives for businesses like trucking companies, warehouse operators, container freight stations, freight forwarders, technology service providers, and start-ups, among others. In accordance with policy, the government plans to provide a range of financial incentives to market participants, operators, and developers in order to increase the effectiveness and visibility of trade, as well as to promote business opportunities through private investment in the logistics sector.


TN unveiled its logistics policy with the purpose to strengthen Tamil Nadu’s logistics system

Tamil Nadu’s CM MK Stalin released the vision of the policy in the Secretariat, with the purpose to strengthen Tamil Nadu’s comprehensive, trustworthy, long-term, and cost-effective logistics system for increased competitiveness and accelerated economic development. The government of Tamil Nadu would, as part of a market development strategy, encourage the start of container rail services and Kisan rail services on key routes on a pilot basis in conjunction with the ministry of railways and with private investment. The evaluation and identification of strategic coastal shipping routes would stimulate and promote multimodal transportation, which would lead to cost-effective services.

coordination with relevant organisations to improve the standard of air cargo-related services, including working with the Central Bureau of Indirect Taxes and Customs, other authorities, and operators to reduce stay time at air cargo complexes and sea ports. The government will expand the single-window clearance now in place, put up under the aegis of the Guidance Tamil Nadu and FaMe TN departments, to cover logistics activities in order to make conducting business easier. One of the initiatives to skill the workforce is the identification of skills gaps in regard to logistics job roles and the preparation of a logistics sector skill plan. Also providing medical & health insurance to heavy vehicle drivers registered in the State at an affordable price would be explored.


All of these suggested actions are a part of strategic interventions that support market development and cost-effective logistic services

All of these suggested actions are a part of strategic interventions that support market development and cost-effective logistic services. Among the strategic objectives are facilitating the development of an integrated and reliable logistics infrastructure and encouraging the accessibility of high-quality, reasonably priced services. Key goals include adopting modern technologies, facilitating talent development, and strengthening sustainability & resilience in the logistics eco-system. Lower logistics costs for export, import, and domestic freight are the desired results, as are leveraging private investment in the construction of logistics infrastructure and developing an efficient mechanism for coordination between State and Central agencies in order to facilitate and carry out logistics-related initiatives.

Using the Geographic Information System (GIS) layers of the State Master Plan being created under the PM GatiShakti NMP for allowing integrated planning and connectivity enhancement is one of the interventions being used to achieve the goals. Another type of engagement involves identifying and resolving current connectivity bottlenecks as well as creating new infrastructure. For the construction of a logistic park, warehousing cluster, and PFT (Private Freight Terminal), the government would designate and mark land parcels with a minimum of 50 acres in strategic locations. The fiscal incentives would be valid for five years following the “promulgation of the policy” date, with the possibility of future extensions based on efficacy and new criteria.