Q. Consider the following statements regarding “Logistics Ease Across Different States (LEADS) index”:
1. It is based on a stakeholders’ survey and uses the World Bank’s Logistics Performance Index (LPI) methodology.
2. LEADS 2022 has adopted a classification-based grading, and States have been now classified under four categories.
Which of the statements given above is/are correct?
Explanation: The Government undertook a survey-based assessment of logistics ease in various States and UTs in the form of the LEADS index in 2018 to gauge their logistics ecosystem. It was followed by surveys in 2019, 2021, and 202210.
· Each of these surveys has been aimed at analysing the business environment at the State level relating to the logistics infrastructure, policy framework, and regulatory regime, across States and UTs.
· It is based on a stakeholders’ survey and uses the World Bank’s Logistics Performance Index (LPI) methodology.
· The State LPI is arrived at using a ranking methodology for stakeholder engagement based on a series of meetings and online surveys in the key areas of logistics- infrastructure, services timelines, traceability, competitiveness, security, operating environments, and efficiency of regulation.
· Unlike the previous versions of LEADS which were based on ranking systems for all states, LEADS 2022 has adopted a classification-based grading, and States have been now classified under four categories viz., coastal States, hinterland/ landlocked States, North-Eastern States, and UTs for the assessment of how well a State or UT has performed in comparison to the top State/UT within the specific cluster.
Source: Economic Survey 2023
