Gujarat retains pole position in logistics index: Commerce ministry report

What is the News?

The Ministry of Commerce has released the LEADS (Logistics Ease Across Different States) 2021.

What is LEADS (Logistics Ease Across Different States)?

Source: Economic Times:

The Ministry of Commerce and Industry (MoCI) had launched LEAD Index in 2018 with the main objective of ranking States and UTs on the efficiency of their logistics ecosystem.

The survey parameters are based on three key pillars—infra-structure, services, and operating and regulatory environment.  

The survey, has 21 indicators, including 17 perception indicators and four objective indicators.  

The first version of the index (LEADS 2018) focused on export-import trade and assessed the efficiency of the logistics ecosystem in each State and UT.

The second edition of the study (LEADS 2019) covered both international and domestic trade.

The third version (LEADS 2021) has gone one-step ahead in analysing the domestic and EXIM logistics ecosystem of the state.

What are the rankings in the index?

Topped by: Gujarat has topped the index.Haryana has secured the second position followed by Punjab at third.

North Eastern States and Himalayan Region: Jammu and Kashmir is the top ranker followed by Sikkim and Meghalaya

Union Territories: Delhi stands at the top rank among other UTs. 

Remarkable improvement: Uttar Pradesh, Uttarakhand and Jharkhand have witnessed a remarkable improvement in their ranks compared to 2019 LEADS ranking and have emerged as the top improvers.

What is the significance of this index?

The inputs given by the LEADS 2021 can lead the way to bring down logistics cost by 5% over the next 5 years.

Currently, the cost of logistics in India is at a high 12-13% of GDP.

How is India faring in the logistics sector? 

India’s logistics cost is approximately 13-14% of its gross domestic product (GDP), while that of developed countries is in the range of 8-10%.  

Further, The World Bank’s Logistics Performance Index ranked India at 44th position in 2018 as against 160 countries.  

Source: This post is based on the following articles: 

• “Gujarat retains pole position in logistics index: Commerce ministry report” published in “Business Standard” on 9th November 2021.
• “Police, RTO add to India’s logistics costs” published in TOI on 9th November 2021.