The Ministry of Commerce & Industry recently released the 6th Logistics Ease Across Different States (LEADS) 2024 report, providing an insightful evaluation of India's logistics performance. In conjunction with this, GatiShakti Vishwavidyalaya (GSV) introduced a new course on the PM GatiShakti Concept for Efficient Infrastructure Planning and National Development, aiming to further enhance India's logistics framework.
Key Highlights of the LEADS 2024 Report
About the Report
LEADS is an annual assessment published by the Ministry of Commerce and Industry with the goal of enhancing inter-state competitiveness and aiding policymakers in improving logistics performance. Conceived in 2018 on the lines of the Logistics Performance Index (LPI) by the World Bank, LEADS has grown to become a crucial tool for identifying areas for reform and investment in India’s logistics sector.
Objective
The report evaluates logistics performance across India's States and Union Territories (UTs) with the intention to:
- Identify key reforms
- Attract investment into the sector
- Improve logistics efficiency
Evaluation Criteria
The LEADS 2024 report assesses logistics performance based on four essential pillars:
- Logistics Infrastructure
- Logistics Services
- Operating and Regulatory Environment
- Sustainable Logistics (introduced for the first time in 2024)
State and UT Rankings in 2024
The rankings have been categorized into three groups:
- Achievers: States and UTs that have demonstrated exceptional logistics performance.
- Fast Movers: States and UTs that have made significant strides in logistics development.
- Aspirers: States and UTs that show potential for further improvement.
Coastal States
- Achievers: Gujarat, Karnataka, Maharashtra, Odisha, Tamil Nadu
- Fast Movers: Andhra Pradesh, Goa
- Aspirers: Kerala, West Bengal
Landlocked States
- Achievers: Haryana, Telangana, Uttar Pradesh, Uttarakhand
- Fast Movers: Bihar, Himachal Pradesh, Madhya Pradesh, Punjab, Rajasthan
- Aspirers: Chhattisgarh, Jharkhand
North-Eastern States
- Achievers: Assam, Arunachal Pradesh
- Fast Movers: Meghalaya, Mizoram, Nagaland, Sikkim, Tripura
- Aspirers: Manipur
Union Territories
- Achievers: Chandigarh, Delhi
- Fast Movers: Dadra and Nagar Haveli & Daman and Diu, Jammu & Kashmir, Lakshadweep, Puducherry
- Aspirers: Andaman and Nicobar Islands, Ladakh
Key Recommendations for the Logistics Sector
The report suggests several measures for the transformation of the logistics sector:
- Adoption of the LEAD Framework: This framework includes key principles like Longevity, Efficiency and Effectiveness, Accessibility and Accountability, and Digitization of logistics processes.
- Promotion of Green Logistics: Initiatives for sustainable transport are encouraged to reduce the carbon footprint of the sector.
- Public-Private Partnerships (PPP): These partnerships are vital for developing multi-modal logistics hubs.
- Regional and City-Level Logistics Planning: Creating detailed plans for last-mile connectivity and improving logistics at the local level.
- Gender Inclusivity: Promoting gender-inclusive practices in logistics to enhance participation and empowerment.
- Embracing New Technologies: The sector should adopt technologies like Artificial Intelligence (AI), Machine Learning (ML), and Data Analytics to boost performance and efficiency.
India's Logistics Sector Overview
- Contribution to GDP: India's logistics sector contributes approximately 13-14% to the national GDP and provides employment to over 22 million people, with the sector expected to generate an additional 1 crore jobs by 2027.
- Market Value: The logistics market in India was valued at USD 435 billion in FY22, with projections to reach USD 591 billion by FY27.
- Logistics Costs: India’s logistics costs, which currently stand at 13-14% of GDP, are significantly higher than global benchmarks. The National Logistics Policy (NLP) 2022 aims to reduce these costs to 8-9% of GDP to align with global standards.
- Global Position: India is ranked 38th among 139 countries in the World Bank's Logistics Performance Index (LPI) 2023. The LPI is a key global tool that helps nations identify challenges and opportunities in trade logistics, assisting them in improving their logistics efficiency.