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:
Customs performance
Infrastructure quality
Ease of arranging shipments
Logistics services quality
Consignment tracking and tracing
Timeliness of shipments
The survey report is usually released every two years.
Logistics
Logistics broadly includes facilities crucial to trade:
Transport services for the movement of goods
Storage facilities that are particularly essential for trade in perishable goods
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.
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:
Integration of Digital System (IDS): Under IDS, 30 different systems of seven departments are integrated including road transport, railways, customs, aviation. and commerce departments.
Unified Logistics Interface Platform (ULIP): It will bring all the digital services related to the transportation sector into a single portal.
Ease of Logistics (E-Logs): It is a new digital platform for industry associations to resolve issues by reaching out to the government.
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.
