Source: The post is based on the article “Logistics Performance Index (LPI):11 Stakeholder Ministries/Departments meets on Measures Taken and Action Plan for Improving India’s Logistics Performance Index (LPI) Ranking” published in “PIB” on 18th November 2023
Why in the News?
Several Ministries recently held discussions on measures taken and action plans needed for improving India’s ranking in the World Bank’s Logistics Performance Index (LPI).
What is the Logistics Performance Index(LPI)?
| Specifications | Details |
| Released by | World Bank |
| Aim | It is a 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. |
| Parameters | There are six parameters: 1) Customs performance 2) Infrastructure quality 3) Ease of arranging shipments 4) Logistics services quality 5) Consignment tracking and tracing 6) Timeliness of shipments |
| Duration of release | It is a biennial report (once every 2 years) that started in 2010 with the exception of 2020 due to COVID-19 pandemic. A restructured index was released in 2023. |
| India’s rank in LPI 2023 | 38 among 139 countries. This is a significant improvement from its previous ranking of 44th in 2018 and 54th in 2014. |
| India’s Target | India’s National Logistics Policy has fixed a target to take up India’s ranking in top 25 by 2030. |
What are the measures India is taking to improve its Logistics Performance Index(LPI) ranking?
1) PM Gati Shakti initiative: Launched in 2021, it is a national master plan for multimodal connectivity. It aims to reduce logistics costs and boost the economy by 2024-25.
2) National Logistics Policy (NLP): It was introduced in 2022 to solve transport issues, optimize manufacturing efficiency, and speed up last-mile delivery in the logistics sector.
3) Land Port Management System (LPMS): It was implemented by the Land Ports Authority of India (LPAI) to digitize operations and facilitate a secure electronic flow of information between all stakeholders at the Integrated check posts (ICPs). It has been successful in reducing the dwell time from 57 days to less than 24 hours.
– Note: Dwell time refers to the amount of time a ship or cargo spends at a port or terminal before being loaded or unloaded onto a vessel.
4) Ministry of Railways: It discussed railway initiatives including 100% electrification of railway tracks , increased CAPEX of INR 2.6 lakhs in FY24 and Eastern and Western dedicated freight corridors.
5) Ministry of Ports: It has taken several initiatives such as automation of weightbridges, improving scanning facilities at the ports and simplifying processes by creating Standard Operating Procedures (SoPS) across all the ports.
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