Context: The Union Minister of Commerce & Industry released the “Logistics Ease Across Different State (LEADS) 2023 report.

About the report

• The LEADS is an indigenous data-driven index to assess logistics infrastructure, services, and human resources across all 36 States and UTs.

• LEADS continues to act as a guiding & bridging mechanism for the identification of interventions enhancing logistics efficiency at State/UTs. It reflects positively on international indices, like Logistics Performance Index.

• The LEADS index was first published in 2018, following the model of the Logistics Performance Index of the World Bank.

• The LEADS 2023 index emphasises a positive shift in the states’ performance across key pillars – Logistics Infrastructure, Logistics Services, and Operating and Regulatory Environment.

Key Findings

• According to the report, 23 States/UTs have notified their State Logistics policies, and 16 States/UTs have granted industry status to logistics.

• The report ranks states based on their logistics ecosystem, highlights key logistics-related challenges faced by stakeholders, and includes suggestive recommendations.

• The index serves as an indicator of the efficiency of logistical services necessary for promoting exports and economic growth.

Three performance categories namely

• Achievers: States/UTs achieving 90% or more percentage.

• Andhra Pradesh, Gujarat,Karnataka, Tamil Nadu; landlocked States Haryana, Punjab, Telangana,Uttar Pradesh; North EasternStates Assam, Sikkim,Tripura and UTs Chandigarh,Delhi have been named as ‘Achievers’ in the LEADS.

• Maharashtra tops amongst the “Achievers” states.

• Fast Movers: States/UTs achieving percentage scores between 80-90%.

• Aspirers: States/UTs achieving percentage scores below 80% have been made.

• The LEADS 2023 survey report would assist PM Gati-Shakti National Master Plan (PMGS-NMP) and National Logistics Policy (NLP) to mapping of logistics infrastructure, services, and regulatory environment enabling State Governments to identify and fill the gaps and achieve data-driven multimodal connectivity.

• PMGS-NMP has potential to save over Rs. 10 Lakh Crore annually by improving logistics efficiency and will bring down the logistic cost to single digits in the coming years.

What is the Logistics Performance Index?

• The Logistics Performance Index (LPI), developed by the World Bank Group, is an interactive benchmarking tool created to help countries identify the challenges and opportunities they face in their performance on trade logistics and what they can do to improve their performance.

LPI is the weighted average of the country’s scores on the six key dimensions

• Efficiency of the clearance process (i.e., speed, simplicity and predictability of formalities) by border control agencies, including customs.

• Quality of trade and transport related infrastructure (e.g., ports, railroads, roads, information technology).

• Ease of arranging competitively priced shipments.

• Competence and quality of logistics services (e.g., transport operators, customs brokers).

• Ability to track and trace consignments.

• Timeliness of shipments in reaching destinations within the scheduled or expected delivery time.

What are the Initiatives Related to Logistics?

• Multimodal Transportation of Goods Act, 1993.

• PM Gati Shakti Scheme

• Multi Modal Logistics Parks

• LEADS Report

• Dedicated Freight Corridor

• Sagarmala Projects

• Bharatmala Project