LOGISTIC PERFORMANCE INDEX (Syllabus: GS Paper 3 – Infrastructure)

News-CRUX-10     8th February 2024        

Context: India's logistics performance has witnessed a remarkable upsurge, as per the latest findings of the latest Logistics Performance Index.

Logistics Performance Index Report (2023):

  • About: The LPI 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.
  • Released by: World Bank.
  • Performance: India has climbed to the 38th position out of 139 countries from its rank of 44 in 2018 and 54 in 2014, showcasing a positive trend in India's logistics competitiveness on the global stage.
  • LPI is based on following Informations:

oA worldwide survey of international logistics operators on the ground (global freight forwarders and express carriers).

oGranular high frequency information on maritime shipping and container tracking, postal and air freight activities.

  • Components:

oCustoms Clearance Process

oInfrastructure Quality

oEase of Arranging Shipments

oQuality of Logistics Services

oTracking and Tracing

oTimeliness

  • Factors Contributing to Improvement: Launch of significant initiatives such as the PM GatiShakti National Master Plan for multimodal connectivity and the National Logistics Policy, aimed at enhancing efficiency and reducing costs.