News Highlight
India climbs 6 places on World Bank’s Logistics Performance Index.
Key Takeaway
- India has moved up six places on the World Bank’s Logistics Performance Index (LPI) 2023, placing 38th out of 139 nations.
- Because of substantial expenditures in both soft and hard infrastructure and technology.
- In 2018, India was ranked 44th on the index but recently rose to 38th on the 2023 list.
- India’s performance had improved dramatically since 2014, when it was rated 54th on the LPI.
- In October 2021, the Prime Minister-led government unveiled the PM Gati Shakti programme, a National Master Plan for multimodal connectivity.
- Its goal is to minimise logistical costs while boosting the economy by 2024-25.
- The PM announced the National Logistics Policy (NLP) in 2022 to assure speedy last-mile delivery, eliminate transportation-related difficulties, and save time.
Logistic Performance Index (LPI)
- About
- The World Bank Group created the LPI as an interactive benchmarking tool.
- It assists countries in identifying the issues and possibilities they encounter in their trade logistics performance.
- It assesses the simplicity with which dependable supply chain linkages may be established and the structural elements that enable this.
- The World Bank published the LPI every two years from 2010 to 2018, with a gap in 2020.
- It was released in 2023 due to the COVID-19 pandemic and a reworking of the index methodology.
- For the first time, LPI 2023 enables comparison across 139 countries.
- LPI 2023 calculates trade speed using metrics from large datasets tracking shipments.
Aspects Led to India’s Improved Logistics Performance
- Policy Interventions
- The government unveiled the PM Gati Shakti programme, a National Master Plan for multimodal connectivity, in October 2021.
- By 2024-25, this programme will minimise logistical costs while boosting the economy.
- National Logistics Policy (NLP): In 2022, the Prime Minister (PM) announced the National Logistics Policy (NLP).
- It ensures speedy last-mile delivery, ends transportation-related difficulties, saves time and money for the industrial sector, and ensures desired speed in the logistics industry.
- These policy measures are bearing fruit, as seen by India’s increase in LPI and other indicators.
- Infrastructure Improvements
- According to the LPI report, India’s infrastructure score rose from 52nd in 2018 to 47th in 2023.
- The government has invested in trade-related soft and hard infrastructure, linking port entrances on both coasts to critical economic centres in the country’s interior.
- This investment has paid off, with India rising from 44th to 22nd worldwide shipments in 2023.
- Technology’s Role
- Technology has been a significant component of India’s efforts to improve logistics performance.
- The government has built a supply chain visibility platform through public-private collaboration.
- It has helped to reduce delays significantly.
- NICDC Logistics Data Services Limited marks containers with radio frequency identification tags.
- It provides end-to-end supply chain tracking to consignees.
- According to the survey, emerging economies like India outperform advanced economies due to modernisation and digitalisation.
- Reduced Dwell Time
- Dwell time is when a vessel spends in a particular port or terminal.
- It may also refer to the period a container or cargo spends at a port or terminal before or after being loaded onto or unloaded from a vessel.
- One example of how India has improved its logistics performance is its relatively short dwell time (2.6 days).
- According to the analysis, the average stay time for containers in India and Singapore between May and October 2022 was three days.
- It was significantly lower than in certain industrialised countries.
- The dwell time in the United States was 7 days, whereas, in Germany, it was 10 days.
- With the implementation of cargo tracking, dwell time in the eastern port has decreased.
India’s Initiatives Related to Logistics
- Multimodal Transportation of Goods Act, 1993.
- Multi-Modal Logistics Parks
- Dedicated Freight Corridor
- Sagarmala Projects
- Bharatmala Project
Sagartat Samriddhi Yojana
- About
- During the “Maritime India Vision 2030” launching in March 2021, Prime Minister unveiled the Sagarmala-Sagartat Samridhi Yojana.
- The MoPSW developed this extensive initiative to solve issues in the nation’s coastal zones.
- The Sagartat Samriddhi Yojna has identified 1,049 projects worth Rs. 3,62,229 crores.
- Four key areas
- Coastal Infrastructure Development
- Coastal Tourism
- Coastal Industrial Development
- Coastal Community Development
Pic Courtesy: Fashion Business
Content Source: The Hindu