The index is an indicator of the efficiency of logistical services necessary for promoting exports and economic growth.
As against 15 states and UTs, this year, the number has reduced to 13 as Himachal Pradesh and Uttarakhand have slipped into “aspirers” and “fast movers” categories, respectively, this year.
Steps taken by Sikkim and Tripura have helped them move up the ladder to the “achievers” category from “fast movers” in 2022.
The other states and UTs in the “achievers” category are Delhi, Assam, Haryana, Punjab, Telangana, and Uttar Pradesh.
Kerala, Maharashtra, Madhya Pradesh, Rajasthan, Uttarakhand, Arunachal Pradesh, Nagaland, Andaman and Nicobar, Lakshadweep, and Puducherry have been categorised as “fast movers” in the report.
Those in the “aspirers” category include Goa, Odisha, West Bengal, Bihar, Chhattisgarh, Himachal Pradesh, Jharkhand, Manipur, Meghalaya, Mizoram, Daman and Diu, Dadra and Nagar Haveli, Jammu and Kashmir, and Ladakh.
The report ranks states on the basis of their logistics ecosystem, highlights the key logistics-related challenges faced by the stakeholders and includes suggestive recommendations, according to the fifth LEADS (Logistics Ease Across Different States) 2023 report unveiled by Commerce and Industry Minister Piyush Goyal.
The index aims at enhancing focus on improving logistics performance across states, which is essential for improving the country’s trade and reducing transaction costs.
Goyal said the logistics sector will play a key role in taking the country’s economy to about USD 35 trillion by 2047.
Citing a report of economic think tank NCAER, he said the country’s logistics cost is estimated in the range of 7.8 per cent to 8.9 per cent.
“Going forward, the aim to bring it down to the 5-6 per cent level is certainly doable,” he said, adding that the government has taken a series of measures, such as investing huge amounts in infrastructure development to help promote cut logistics costs.
He suggested the industry to focus on skilled manpower, enhanced participation of states, use of new technologies like AI, blockchain and data analytics, and steps to reduce carbon footprint will further help in the growth of the country’s logistics sector.
The minister said the LEADS report will play a pivotal role in instilling healthy competition among states/UTs to enhance logistics performance.
LEADS was conceived on the lines of the Logistics Performance Index (LPI) of the World Bank in 2018. While the LPI relies entirely on perception-based surveys, LEADS incorporates perception and objectivity, thereby enhancing the robustness and comprehensiveness of this exercise.
The report assesses states’ performance across the key pillars of Logistics Infrastructure, Logistics Services and Operating and Regulatory Environment, and empowers the state/UT governments by providing region-specific insights for informed decision-making and comprehensive growth.
It is based on a pan-India primary survey conducted between May and July 2023, covering over 7,300 responses across 36 states/UTs. Additionally, over 750 stakeholder consultations, facilitated by National, Regional, and State Associations, significantly contributed to this comprehensive evaluation.
