The 3rd edition of the Logistics Ease Across Different States (LEADS) report was released today at New Delhi in the presence of Hon’ble Minister of Commerce & Industry, Consumer Affairs, Food & Distribution and Textiles, Shri. Piyush Goyal. As per the report, considering all the holistic factors, Gujarat bagged the top position, followed by Haryana and Punjab at the 2nd and 3rd position, respectively.
In the month of May, the Logistics department under the Department of Commerce had launched the LEADS survey in an attempt to measure the efficiency of the logistics ecosystem of States and Union Territories UTs and suggest action points for further improvement
Mr. Goyal, during the event, not only acknowledged the contribution of the logistics industry in India’s economic growth but also deemed it as a life-saver in the fight against COVID-19, appreciating each stakeholder in the logistics sector that served selflessly.
The Ministry of Commerce & Industry (MoC) launched the LEADS study in 2018 with the purpose of ranking Indian states and UTs on the basis of the efficiency of their respective logistics ecosystems. It was also designed to accentuate the challenges and shortcomings of the industry and suggest remedial practices.
Going a step ahead of LEADS 2018 and 2019, this year’s report focused on the analysis of the domestic and EXIM logistics ecosystem of the states. There have been two major changes in the overall assessment framework, statistically analyzing 21 perceptive as well as objective variables to prepare a composite index, on the basis of which, the states and UTs have been ranked. The survey, which was conducted during the period of May-August 2021, garnered 3771 responses.
The perception-based survey was administered among 4 major categories of stakeholders – traders/shippers, transport service providers, terminal operators and logistics service providers – and collected binary data pertaining to policy, institutional framework, current enforcement mechanism, warehousing approvals & processes, drivers’ empowerment etc.. The ultimate goal was to understand the initiatives taken by the state governments for the improvisation of logistics in their respective states.
As per the report, pro-active policies, well-developed infrastructure and state government driven services have helped Gujarat maintain its rank since LEADS 2019. Within the North-Eastern States and Himalayan UTs category, Jammu & Kashmir holds the top spot, followed by Sikkim and Meghalaya. Delhi was given the highest ranking among other UTs, especially in the quality of multimodal terminals, and owing to the quality of road infrastructure & overall logistics services, Chandigarh stood at the 2nd rank. However, due to minimal responses from other UTs, they have been excluded from the ranking table this year. Uttar Pradesh was the highest gainer as it made a leap from 13th position in LEADS 2019 to 6th position in this year’s survey. Haryana followed, moving from 6th (2019) to 2nd rank (2021). On the other hand, Madhya Pradesh took the plunge from 9th to 17th position and Assam moved down from 15th to 21st position, while comparing LEADS 2019 and 2021 respectively.
I am confident that LEADS 2021 will foster growth and improvement in Logistics ecosystem at the State/UT level, which will in turn help the country achieve the goal of ‘Local goes Global’. The department will continue its engagement with the States and UTs to implement the recommendations in the report and to stimulate holistic growth and progress.”~ Sh. Piyush Goyal, Hon’ble Minister of Commerce & Industry, Consumer Affairs, Food & Distribution and Textiles
States and UTs are encouraged to analyze the LEADS report and introduce suitable strategies along with a prioritized action plan for improving their logistics ecosystems. With the correct remedial game plans, a 5% reduction in logistics costs is anticipated in the next 5 years. This will ensure that the logistics sector becomes a cardinal factor in making India a 5 trillion dollar economy.
Read the full report here: LEADS-2021-Report_Final.pdf (commerce.gov.in)