Post Date : April 16, 2022
The Logistics Ease Across Different States (LEADS) Report is a Government of India (Ministry of Commerce and Industry) initiative that was first launched in 2018 with the purpose of ranking Indian states and UTs on the basis of the efficiency of their respective logistics ecosystems. It was designed to accentuate the challenges and shortcomings of the industry and suggest remedial practices. Continuing the practice, briefly disrupted due to COVID in 2020, the survey process for LEADS 2022 will begin shortly.
“The reach out process will include interactions with Nodal Officers as well as private stakeholders of the logistics sector in states and union territories pan-India. The survey will not be virtual but a physical one wherein, apart from the public sector stakeholders, the ones from the private sector will also be contacted. The private stakeholders would include Shipper/Export/Importer, Logistics Service Providers (Freight forwarders, CHAs, Custom brokers etc), Transport Service Providers (Truck operators etc) and Transport Infrastructure Service Providers (ICD/CFS operators, port operators, warehouse operators etc.),” an official involved in the survey process informed us
In the last 5 years, owing to factors including but not limited to the pandemic, the Indian logistics and supply chain industry has gained momentum as well as the gravity it needed and deserved. During the pandemic, it turned out to be the backbone of the nation, though silently. It was also during these recent years that the Government of India realised the potential of the sector and the role it could play in the speedy economic development of the nation, given the chance. Therefore, the PM Gati Shakti – the national plan for multi-modal connectivity throughout the country – was bought into existence.
An efficient logistics ecosystem – be it cost or performance – will help the Indian government to achieve the ambitious goal of becoming a USD 5 trillion economy. However, as the saying goes, ‘Every Drop Counts’, it is important that we make a collective effort to achieve this goal. The LEADS Report aims to measure ease of logistics in all the Indian states and UTs, identify the pain points and develop corrective actions for such pain points. The State governments have recognized the importance of logistics and have bought about various policy changes to enhance their respective LEADS Score.
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. The inputs from the LEADS exercise will be helpful for states in channelising capital investment in infrastructure under PM Gati Shakti, for which Rs 1,00,000 crore interest-free loan support has been announced in Union Budget 2022-23.
According to the LEADS Report 2021, considering all the holistic factors, Gujarat bagged the top position, followed by Haryana and Punjab at the 2nd and 3rd position, respectively. Within the North-Eastern States and Himalayan UTs category, Jammu & Kashmir held the top spot. 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. Uttar Pradesh was the highest gainer as it made a leap from 13th position in LEADS 2019 to 6th position in 2021. On the other hand, Madhya Pradesh took the plunge from 9th position in LEADS 2019 to 17th position in 2021.