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  • Context (PIB): India has ranked 38th out of 139 countries in the World Bank’s Logistics Performance Index Report 2023.
  • India’s rank has improved by six places from 44 in 2018 and sixteen places from 54 in 2014.

Logistics Performance Index (LPI)

  • LPI is an interactive benchmarking tool developed by the World Bank to help countries identify trade logistics challenges and opportunities and improve performance.
  • It considers six parameters to evaluate the logistics performance of the countries:
    1. Customs performance
    2. Infrastructure quality
    3. Ease of arranging shipments
    4. Logistics services quality
    5. Consignment tracking and tracing
    6. Timeliness of shipments
  • The survey report is usually released every two years.

world bank: India raises its logistics game, rises six spots on World Bank Index to 38 - The Economic Times

Logistics

  • Logistics broadly includes facilities crucial to trade:
    1. Transport services for the movement of goods
    2. Storage facilities that are particularly essential for trade in perishable goods
    3. Government services that facilitate trade such as licensing and customs
  • Logistical costs currently account for 13-14% of India’s GDP, nearly double the costs in developed countries.

Reasons Behind India’s Improvement in LPI

PM Gati Shakti – National Master Plan for Multi-modal Connectivity

  • PM Gati Shakti is a digital platform that brings 16 ministries together for integrated planning and coordinated implementation of infrastructure connectivity projects.
  • It will incorporate the infrastructure schemes of various Ministries and State Governments like Bharatmala, Sagarmala, inland waterways, dry/land ports, UDAN, etc.

PM Gati Shakti to be a game-changer for infra development: Brickwork Ratings - BusinessToday

National Logistics Policy (NLP)

  • NLP aimed at easing the movement of goods and boosting the trade sector in the Indian economy.
  • The new logistics policy has four features:
    1. Integration of Digital System (IDS): Under IDS, 30 different systems of seven departments are integrated including road transport, railways, customs, aviation. and commerce departments.
    2. Unified Logistics Interface Platform (ULIP): It will bring all the digital services related to the transportation sector into a single portal.
    3. Ease of Logistics (E-Logs): It is a new digital platform for industry associations to resolve issues by reaching out to the government.
    4. System Improvement Group (SIG)

Measures by Line Ministries

  • Expansion of electrification of railway tracks by the Ministry of Railway (MoR).
  • The Land Port Authority of India (LPAI) has reduced the average export and import release time through interventions.
  • The Ministry of Ports, Shipping and Waterways (MoPSW) has launched National Logistics Portal Marine, which is a single window interface platform for port-related logistics operations.
  • Line ministry refers to the governmental ministry responsible for a specific area or sector, such as transportation, health, education, or finance.
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