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India jumps 6 places to rank 38 in World Bank’s Logistics Performance Index 2023

India jumps 6 places to rank 38 in World Bank’s Logistics Performance Index 2023


India jumps 6 places to rank 38 out of 139 countries in the 7th edition of the Logistics Performance Index (LPI 2023) of the World Bank. On 4 out of 6 LPI indicators, India has registered a remarkable improvement because of various initiatives being implemented, hence World Bank has acknowledged the efforts towards increasing logistics efficiency.

Logistics play a crucial role in today’s economy and are necessary for the sustainable and balanced economic development of all parts of the country. The effectiveness of any company or nation's economy depends on how well its trade logistics operations are managed. With this view, India has launched various initiatives like PM GatiShakti National Master Plan, National Logistics Policy, and has also invested in trade-related soft and hard infrastructure connecting port gateways on both coasts to the economic zones in the hinterland.

The PM GatiShakti National Master Plan (PMGS-NMP), a coordinated strategy utilising technology for infrastructure planning and development, was introduced in October 2021. It is a collaborative institutional mechanism between all stakeholders including Central and State/UT Government(s), Local bodies, and Service Providers to facilitate the Right of Way (RoW) Application Process through a single interface. It integrates existing and proposed infrastructure initiatives of different Central Ministries, to ensure first and last-mile connectivity, for the seamless movement of people and goods.

Apart from this initiative, the government launched National Logistics Policy (NLP) in September 2022, which acts as a guiding document for States and UTs seeking to formulate logistics policy. Its main focus is on modernising and digitising logistics infrastructure and services. The policy also places a strong emphasis on streamlining processes for seamless coordination and a decrease in overall logistics costs, in addition to encouraging the creation of jobs and the skilling of the workforce, with a focus on bringing efficiency in services (processes, digital systems, regulatory framework), and human resources.

Additionally, the Ministry of Commerce & Industry informed in a press release that at a sub-National level, the Department for Promotion of Industry and Internal Trade (DPIIT) has been conducting LEADS (Logistics Ease Across Different States) study since 2018 which helps to identify and resolve logistics inefficiencies and improve trade facilitation across supply chains.

Further, the Ministry also highlighted other initiatives like Sagarmala which aims to improve connectivity to ports and reduce cargo dwell time, and Bharatmala which focuses on improving road connectivity of major corridors. These initiatives have played a pivotal role in improving India’s logistics efficiency.

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