Andhra Pradesh, Maharashtra, Gujarat and 12 other states and Union territories (UTs) have emerged as “achievers” in in ensuring the ease of logistics services. The ranking is based on their performance in the logistics index chart 2022, which is a part of the Logistics Ease Across Different States (LEADS) 2022 report.
Releasing the report on Thursday, commerce and industry minister Piyush Goyal said India can potentially save as much as Rs 10 trillion per year by improving logistics efficiency through initiatives like the PM GatiShakti.
The PM GatiShakti national master plan, which completed one year on Wednesday, mandates that different departments join hands for a coordinated development of infrastructure projects, especially to address first and last-mile connectivity issues and reduce logistics costs.
The government is already aiming to reduce the country’s logistics costs to 8% of its GDP in the next five years from 13-14% now.
According to the LEADS report, the other states and Union territories that are in the “achievers” category are Assam, Chandigarh, Delhi, Haryana, Himachal Pradesh, Karnataka, Odisha, Punjab, Tamil Nadu, Telangana, Uttar Pradesh and Uttarakhand.
Importantly, in a break from the past, states are not ranked in any particular order this time but are clubbed into categories such as achievers, fast movers and aspirers. So, comparisons with past performances of any particular state aren’t feasible.
The logistics index is an indicator of the efficiency of such services that are necessary to boost trade competitiveness and economic growth. The report ranks the states on the basis of their logistics ecosystem. It also brings to light key logistics-related challenges faced by various stakeholders and offers recommendations to remove these bottlenecks.
Kerala, Madhya Pradesh, Rajasthan, Puducherry, Sikkim and Tripura are in the “fast movers” category. Next comes the “aspirers” category. They include Bihar, Chhattisgarh, Goa, Mizoram, Andaman and Nicobar Islands, Lakshadweep, Ladakh, Nagaland, Jammu and Kashmir, and Arunachal Pradesh.
Commenting on the PM GatiShakti initiative, Goyal said: “It will also help in bringing down the cost to single digits in the coming years.” The programme would help close development gaps among states by ensuring infrastructure development across the country through integrated planning.
Moreover, Prime Minister Narendra Modi last month unveiled the national logistics policy, which aims to ensure seamless movement of goods and services across the country and cut elevated logistics costs, often considered the biggest structural bottleneck for both external and internal trade in India.