How the economy gets a boost from efficient logistics 

News: Recently, the government released the annual Logistics Ease Across Different States (LEADS) report for 2021.  

LEADS report ranks states and Union territories (UTs) on the efficiency of their logistics ecosystem. It aims to induce stakeholders to make necessary improvements. 

How will efficient logistics help? 

With the country aspiring to be a manufacturing destination, an improved logistics environment will benefit in the following manner:

– Generating better economies of scale,  

– Minimizing cost per unit, leading to lower prices for the consumer. 

– Improved supply chain efficiencies will help bring down logistics costs   

– Enhances industry competitiveness. 

What are the initiatives taken by the government in this regard? 

Policy target: Centre’s aim is to bring down logistics costs in India by 4-5% of GDP over the next five years to approximately 8% of GDP.  

Developmental initiatives taken at the international level-The Supply Chain Resilience Initiative (SCRI)

Developmental initiatives taken at Domestic front: Infrastructure development initiatives such as Sagarmala, Bharatmala, Dedicated Freight Corridors, paperless EXIM trade process through E-Sanchit, mandatory electronic toll collection system (FASTag), etc. 

Source: This post is based on the article “How the economy gets a boost from efficient logistics” published in Livemint on 16th Nov 2021.