19-December-2023-Special Article

LOGISTICS EASE ACROSS DIFFERENT STATE (LEADS) 2023

The Ministry of Commerce & Industry recently unveiled the 5th edition of the “Logistics Ease Across Different States (LEADS) 2023” report. This indigenous data-driven index plays a crucial role in assessing and enhancing logistics infrastructure, services, and human resources across India’s 36 States and Union Territories (UTs). LEADS serves as a guide for stakeholders in the logistics sector, offering strategic insights and fostering healthy competition among regions to elevate their logistics performance.

About LEADS:

Objective of LEADS:

• LEADS is designed as an indigenous index, akin to the Logistics Performance Index of the World Bank, to evaluate and enhance logistics efficiency at the State/UT level.
• It provides actionable insights for stakeholders, encouraging improvements in logistics infrastructure, services, and regulatory environments.

Evaluation Criteria:

• Logistics performance is evaluated based on three pillars: Infrastructure, Services, and Operating & Regulatory Environment.
• This comprehensive approach ensures a nuanced assessment of the logistical ecosystem in each State/UT.

Methodology:

• The report is based on a primary survey conducted nationwide between May and July 2023, incorporating over 7,300 responses.
• Insights from 750 stakeholder consultations, facilitated by various associations, contribute to the holistic understanding presented in LEADS.

Key Highlights of LEADS 2023:

Achievers:

• Thirteen states and UTs, including Andhra Pradesh, Karnataka, Tamil Nadu, Chandigarh, and Gujarat, are recognized as achievers in the logistics index chart.
• These regions exhibit efficient logistical services, contributing significantly to export promotion and economic growth.

Fast Movers:

• States such as Kerala, Maharashtra, Madhya Pradesh, Rajasthan, Uttarakhand, Arunachal Pradesh, and Nagaland are acknowledged as fast movers.
• Notable progress and improvements in logistical services characterize these areas.

Aspirers:

• States and UTs like Goa, Odisha, West Bengal, Bihar, Chhattisgarh, Himachal Pradesh, and Jharkhand fall under the aspirers category.
• These regions show potential for growth in their logistics ecosystem and are actively working to enhance their capabilities.

Policy Reforms:

• LEADS 2023 emphasizes the importance of key policy reforms, including granting industry status for logistics, implementing digital initiatives (PM GatiShakti, Logistics Data Bank, Unified Logistics Interface Platform), and aligning State Logistics Policies with the National Logistics Policy.

Logistics Performance Index (LPI):

Definition:

• LPI, developed by the World Bank Group, is an interactive benchmarking tool to help countries identify challenges and opportunities in trade logistics performance.
• It assesses countries based on six key dimensions, including customs performance, infrastructure quality, and logistics services quality.

India’s Ranking:

• In LPI 2023, India secures the 38th position out of 139 countries, reflecting its standing in global trade logistics.

Initiatives Related to Logistics:

• Multimodal Transportation of Goods Act, 1993: Legislation facilitating the efficient movement of goods through multiple modes of transportation.
• PM Gati Shakti Scheme: An initiative to strengthen and integrate infrastructure across sectors, enhancing connectivity and logistics.
• Multi Modal Logistics Parks: Development of logistics parks to streamline and integrate various transportation modes.
• Dedicated Freight Corridor: Infrastructure project focused on creating dedicated freight corridors for efficient goods transportation.
• Sagarmala Projects: Projects under the Sagarmala initiative to develop port infrastructure and enhance coastal shipping.
• Bharatmala Project: A comprehensive road and highways development project contributing to improved logistics connectivity.

Conclusion:

LEADS 2023 stands as a pivotal tool in assessing and enhancing India’s logistics landscape. The report not only recognizes high-performing regions but also encourages aspirational states to strive for logistical excellence. The policy recommendations underscore the importance of a comprehensive approach to logistics, aligning policies at both state and national levels. With India’s focus on initiatives like Gati Shakti and multimodal transportation, LEADS serves as a compass for ongoing improvements in the logistics sector, crucial for economic growth and global competitiveness.

Mains Question:

1. Examine the significance of the Logistics Ease Across Different States (LEADS) 2023 report in shaping India’s logistics landscape. Discuss the key highlights and the role of policy reforms highlighted in the report. How can initiatives like LEADS contribute to the country’s economic growth and global competitiveness? (150 WORDS)