The Ministry of Commerce & Industry recently unveiled the 5th version of the “Logistics Ease Across Different State (LEADS) 2023” document. This publication serves as a roadmap for participants in the Logistics Sector, offering strategic insights. The LEADS is an internally derived index aiming to examine logistics infrastructure, services, and human resources across all 36 States and UTs. It plays a significant role in identifying interventions to enhance logistics efficiency at the State/UT level.
Origins and Purpose of LEADS
LEADS was first introduced in 2018, influenced by the Logistics Performance Index (LPI) of the World Bank. Its goal is to provide strategic insights to stakeholders in the logistics sector and foster healthy competition among states and union territories to boost their logistics performance. Over the years, LEADS has evolved significantly and now influences international indices, like the LPI.
How LEADS Evaluates Logistic Performance
The LEADS report assesses logistics performance through three key pillars, namely, Logistics Infrastructure, Logistics Services, and the Operating and Regulatory Environment. The evaluation methodology follows a pan-India primary survey conducted between May and July 2023, incorporating over 7,300 responses across 36 states/UTs. Additionally, insights from over 750 stakeholder consultations are included, facilitated by various associations.
Key Highlights of the LEADS 2023 Report
In the 2023 logistics index chart, thirteen states and Union Territories, including Andhra Pradesh, Karnataka, Tamil Nadu, Chandigarh, and Gujarat, distinguished themselves as achievers. These regions demonstrated efficient logistical services contributing to export enhancement and economic growth. Meanwhile, Kerala, Maharashtra, Madhya Pradesh, Rajasthan, Uttarakhand, Arunachal Pradesh, and Nagaland are identified as fast movers, showing substantial progress in their logistic services. Furthermore, several states and UTs, including Goa, Odisha, West Bengal, Bihar, Chhattisgarh, Himachal Pradesh, and Jharkhand, categorized as aspirers, indicating potential for growth in their logistics ecosystem.
Policy Reforms Emphasized in the LEADS Report
The significance of policy reforms is highlighted in the report. These include the recognition of logistics as an industry, digital initiatives, and the alignment of State Logistics Policies with the National Logistics Policy. The digital initiatives mentioned consist of PM GatiShakti, Logistics Data Bank, and the Unified Logistics Interface Platform (ULIP).
About the Logistics Performance Index
The LPI is an interactive benchmarking tool developed by the World Bank Group. It helps countries identify their challenges and opportunities concerning trade logistics performance and to find ways for improvement. The score is based on six key dimensions: Customs performance, Infrastructure quality, Ease of arranging shipments, Logistics services quality, Consignment tracking and tracing, and Timeliness of shipments. In the LPI 2023, India scored 38th out of 139 countries.
Initiatives Related to Logistics
In order to enhance the logistics sector, several initiatives such as the Multimodal Transportation of Goods Act, 1993, PM Gati Shakti Scheme, Multi Modal Logistics Parks, LEADS Report, Dedicated Freight Corridor, Sagarmala Projects, and Bharatmala Project have been introduced. The success of these initiatives depends on efficient coordination between the government and the private sector.
