Logistics Performance Index

Logistics Performance Index

Subject – Economy

Context – The laying of the foundation stone at the Jewar Airport which the Prime Minister described as the “logistics gateway to North India” is amuch-needed milestone in India’s push to augment and enhance its logistics infrastructure.

Concept –

• 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.
• The logistics 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.

Logistics Ease Across Different States (LEADS) Report (Index) 2021

• Released by Ministry of Commerce and Industry.
• The LEADS report is aimed at gauging the logistics performance of states and Union Territories (UT) and identifying areas where they can improve logistics performance.
• It was launched in 2018.
• States are ranked based on quality and capacity of key infrastructure such as road, rail and warehousing as well as on operational ease of logistics including security of cargo, speed of terminal services and regulatory approvals.
• The report is structured along the three dimensions which collectively influence logistics ease- Infrastructure, Services, and Operating and Regulatory Environment which are further categorised into 17 parameters.