Gujarat, Karnataka, Maharashtra, Odisha, Tamil Nadu, and Delhi are among the 13 states and Union Territories that have been categorised as “achievers” in the logistics index chart 2024, according to a report released by the Commerce and Industry Ministry on Friday.
The index is an indicator of the efficiency of logistical services necessary for promoting exports and economic growth.
In 2023 also, 13 states and UTs were in the achievers category.
The other states and UTs in the “achievers” category are Chandigarh, Haryana, Telangana, Uttar Pradesh, Uttarakhand, Assam and Arunachal Pradesh.
Andhra Pradesh, Goa, Bihar, Himachal Pradesh, Madhya Pradesh, Punjab, Rajasthan, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Dadra and Nagar Haveli and Daman and Diu, Jammu and Kashmir, Lakshadweep, and Puducherry have been categorised as “fast movers” in the report.
Those in the “aspirers” category include Kerala, West Bengal, Chhattisgarh, Jharkhand, Andaman and Nicobar Islands, and Ladakh.
Maharashtra, Odisha, Uttarakhand, Arunachal Pradesh have improved their rankings from ‘Fast Movers’ and ‘Aspirers’ categories in 2023 to ‘achievers’ category in 2024. Punjab has slipped from the top category to ‘Fast Movers’ in 2024.
Andhra Pradesh, on the other hand, has slipped to ‘Fast Movers’ status from ‘Achievers’ in 2023.
The report ranks states on the basis of four key pillars–Logistics Infrastructure, Logistics Services, Operating and Regulatory Environment, and the newly introduced Sustainable Logistics, according to the sixth LEADS (Logistics Ease Across Different States) 2024 report unveiled by Commerce and Industry Minister Piyush Goyal.
The index aims at enhancing focus on improving logistics performance across states, which is essential for improving the country’s trade and reducing transaction costs.
LEADS was conceived on the lines of the Logistics Performance Index (LPI) of the World Bank in 2018. While the LPI relies entirely on perception-based surveys, LEADS incorporates perception and objectivity, thereby enhancing the robustness and comprehensiveness of this exercise.
The report assesses states’ performance across the key pillars of Logistics Infrastructure, Logistics Services and Operating and Regulatory Environment, and empowers the state/UT governments by providing region-specific insights for informed decision-making and comprehensive growth.
Speaking at the event, Goyal asked the DPIIT to tighten the entire marking system from this year and make all the criteria a bit tougher to enhance competition among the states and UTs. “I think too many people are getting high achiever awards. So we are going to tighten the entire marking system.
“Expectations obviously have to go up. We cannot live up to the expectations that we set five years ago,” he said.
The department also released a framework for assessment of logistics cost in India.
“The reason for this is that over the years we have been dependent on foreign companies or outside agencies who have somehow come to a conclusion that India’s logistics cost is 13-14 per cent of GDP…extremely high. I think there is more to it than meets the eye,” Goyal said.
He announced that the ministry is considering a digital public infrastructure like UPI type of framework for the logistics sector.
“The idea is that just like UPI has created a network on which different people can ride on that network and share data and make it easier for people to do financial transactions in the case of UPI, in our case it will be about all the paperwork that goes into movement of goods. Imagine what a transformational impact it could have on your businesses,” he said.
He said that it is necessary as otherwise “we will end” up having millions of records and paper-based documents which finally will come out to haunt “us”.
“We need to bring all the people on one network. We would also like to develop digital public infrastructure that will transform the governance framework, it will enhance ease of operations for all of you and help decision making faster and most cost effective,” the minister noted.
He suggested the states and UTs to start drawing regional action plans on ways to make logistics business easier for companies.
Future planning is key to attract investments, he said, adding, “adopt green logistics technology because the world is demanding sustainable practices”.
