India Pushes for Improved Logistics Performance Index Ranking

In a bid to enhance its standing on the global logistics stage, India has intensified efforts to secure a higher ranking on the International Logistics Performance Index (LPI). The World Bank, responsible for compiling the index, is now poised to incorporate more data into its evaluation process, aiming for a more accurate depiction of trade facilitation across nations.

Currently positioned at 38th place in the LPI 2023, India has seen a notable advancement from its previous rank of 44th. Despite this progress, concerns persist regarding the index’s methodology, with the Indian government advocating for a more objective assessment that reflects ground realities.

According to a source closely involved in the matter, the World Bank is transitioning towards a data-driven approach, engaging in dialogue with nations to ensure the forthcoming index relies less on subjective perceptions and more on concrete data points.

Dr. Surendra Ahirwar, Joint Secretary (Logistics Division) at the Department for Promotion of Industry and Internal Trade (DPIIT), during a recent interview, had shed light on India’s logistics landscape and recent developments. Dr. Ahirwar had emphasized the need for a rational evaluation of India’s logistics costs, highlighting the release of the Logistics Cost Framework by the Ministry of Commerce and Industry. This framework, developed in collaboration with the National Council for Applied Economic Research, offers a comprehensive insight into India’s logistics expenses, estimated to range between 7.8% to 8.9% of the GDP, aligning closely with global benchmarks.

Discussing the government’s vision, Dr. Ahirwar elaborated on initiatives such as the Unified Logistics Interface Platform (ULIP) and the Cargo Tracking App, aimed at streamlining logistics operations and enhancing transparency across the supply chain. He also outlined the need for strategic interventions to optimize expenditure without jeopardizing industry viability.

Further, Dr. Ahirwar emphasized the government’s commitment to fostering a conducive environment for the logistics sector while maintaining sustainability. He stressed the importance of periodic assessments through the Logistics Cost Framework to gauge cost dynamics and inform policy formulation.

Looking ahead, Dr. Ahirwar expressed optimism regarding India’s positioning in the global supply chain, citing synergies between initiatives like the National Logistics Policy, PM Gati Shakti, and the LEADS Report. These concerted efforts, underpinned by competitive federalism, are poised to bolster infrastructure development, enhance logistics efficiency, and elevate India’s stature as a key player in the global value chain.

As India embarks on its journey towards logistics excellence, collaborative endeavors between the government, industry stakeholders, and international partners are set to chart a transformative course for the nation’s logistics landscape.

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