India has made significant strides in logistics infrastructure and technology, according to the World Bank's Logistics Performance Index (LPI) 2023. The country has climbed six places to reach the 38th rank on the index, scoring 3.4 out of 5 on the six factors considered in the survey, which are customs, infrastructure, shipments, competence and quality, timeliness, and tracking and tracing. The report cited India's investments in both "soft and hard infrastructure" since 2015 to connect ports to economic poles in the hinterland.
The survey report, which covers 139 countries, is usually released every two years, but it was delayed due to difficulties in conducting the survey during 2020-21. The most recent survey result showed that Singapore is the logistics hub with an overall LPI score of 4.3 out of 5, while the top 10 countries included mostly rich European countries, Canada, and China's special administrative region of Hong Kong.
India had moved up to the 35th spot in 2014 in terms of logistics performance, but fell to the 44th place in 2018. However, logistics competence, quality, and timeliness were all areas where India performed particularly well in the index's 2023 result, with timeliness being a problem on a global scale due to the lingering effect of the pandemic on the supply chain. India performed the worst in customs.
To ensure efficiency in the logistics sector, the central government launched the National Logistics Policy (NLP) in 2022, with the goal of raising India's LPI score to rank among the top 25 by 2030. The current average score of these 25 nations is 3.92. Lowering logistics expenses, which account for 13-14% of the country's GDP compared to only 8-10% in developed nations, is one of the primary goals of the NLP. Lower logistics costs will help India's performance globally.
The improvement in India's logistics infrastructure and technology is significant for the country's economy. As a result, India will be able to transport goods more efficiently, allowing businesses to operate more efficiently and lowering logistics costs, which will make the country more competitive in the global market. In conclusion, India's improved ranking in the LPI will help boost the country's economy and promote its growth in the coming years.
