Indian Economy News

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

India moves up six positions to rank 38 out of 139 nations in the 7th edition of the Logistics Performance Index (LPI 2023). Moreover, India has made significant progress on 4 of the 6 LPI metrics.

According to the Ministry of Commerce & Industry, the government has also invested in trade-related soft and hard infrastructure that connects port entrances on both coasts to economic zones in the hinterland.  

The government credited its PM GatiShakti National Master Plan, launched in October 2021. It was also stated that PM GatiShakti addresses the rising need of reshaping the logistics landscape because of issues such as rapid urbanisation, changing energy choices, e-commerce, the need to establish resilient supply chains, and so on.

According to the Ministry, the National Logistics Policy (NLP), which serves as a guiding document for states and union territories looking to develop logistics policies, has helped enhance India's position. The NLP focuses on switching to more environmentally friendly fuels and energy-efficient modes of transportation to reduce the carbon footprint. 

An official stated that “This is a strong indicator of India’s global positioning, with this development being powered by our Government’s laser focus on reforms for improving logistics infrastructure".

Furthermore, the Ministry stated that the NICDC's Logistics Data Bank project, which involves attaching radio frequency identification (RFID) tags to containers, has been in operation since 2016 in the Western part of India, with plans to expand to the entire country by 2020. The Logistics Data Bank project also encourages healthy competition among ports by providing data on performance benchmarking, congestion, dwell time, speed, and transit time analysis. 

The Commerce Ministry even stated that initiatives such as Sagarmala and Bharatmala have played a critical role in increasing India's logistics efficiency.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.