LOGISTICS
PERFORMANCE INDEX - REPORTS & INDICES
News:
13 States, UTs Among
'Achievers' In Logistics Performance Index: DPIIT Report
What's
in the news?
●
Andhra Pradesh, Karnataka, Tamil Nadu,
Chandigarh and Gujarat are among the 13 states and Union Territories that have
again been categorised as "achievers" in the logistics index chart
2023, according to a report released by the commerce and industry ministry.
Key
takeaways:
●
As against 15 states and UTs, this year
the number has reduced to 13 as Himachal Pradesh and Uttarakhand have slipped
into "aspirers" and "fast movers" categories, respectively,
this year.
National
Logistics Performance Index:
●
It is released by the Commerce and Industry Ministry.
Objective:
●
The index is an indicator of the
efficiency of logistical services necessary for promoting exports and economic
growth.
Aim:
●
The index aims at enhancing focus on
improving logistics performance across states, which is essential for improving
the country's trade and reducing transaction cost.
Features:
●
The report ranks states on the basis of
their logistics ecosystem, highlights the key logistics-related challenges
faced by the stakeholders and includes suggestive recommendations, according to
the fifth LEADS (Logistics Ease Across
Different States) 2023 report unveiled by Commerce and Industry Minister Piyush
Goyal.
●
The country's logistics cost is estimated
in the range of 7.8% to 8.9%.
●
The industry needs to focus on skilled
manpower, enhanced participation of States, use of new technologies like AI,
blockchain, and data analytics, and steps to reduce carbon footprint will
further help in the growth of the country's logistics sector.
●
The logistics sector will play a key role
in taking the country's economy to about USD
35 trillion by 2047.
Categories:
●
Achievers
●
Fast movers
●
Aspirers
Achievers:
●
Andhra Pradesh, Karnataka, Tamil Nadu,
Chandigarh, Gujarat, Sikkim, Tripura, Delhi, Assam, Haryana, Punjab, Telangana
and Uttar Pradesh.
Fast
movers:
●
Kerala, Maharashtra, Madhya Pradesh,
Rajasthan, Uttarakhand, Arunachal Pradesh, Nagaland, Andaman and Nicobar,
Lakshadweep, and Puducherry.
Aspirers:
●
Goa, Odisha, West Bengal, Bihar,
Chhattisgarh, Himachal Pradesh, Jharkhand, Manipur, Meghalaya, Mizoram, Daman
and Diu, Dadra and Nagar Haveli, Jammu and Kashmir, and Ladakh.
Go
back to basics:
Logistics
Performance Index (LPI):
●
It is released by the World Bank.
●
It is an interactive benchmarking tool
created to help countries identify the challenges and opportunities they face
in their performance on trade logistics and what they can do to improve their
performance.
●
It measures the ease of establishing
reliable supply chain connections and structural factors that make it possible,
such as the quality of logistics services, trade and transport-related
infrastructure, as well as border controls.
Highlights
of LPI 2023:
●
The LPI 2023 allows for comparisons across
139 countries.
●
The LPI 2023, for the first time, measures
the speed of trade with indicators derived from big datasets tracking
shipments.
●
Singapore and Finland are the most
efficient and highest-ranked LPI countries as per the 2023 LPI.
●
India is ranked 38 out of 139 countries,
climbing six places from the previous index.
●
Two major factors for India's jump in the
index could be modernisation and digitalisation, which the report quotes as a
reason for emerging economies like India to leapfrog advanced countries.