INDIA’S LOGISTICS PERFORMANCE INDEX (LPI) 2023

PRELIMS BITS – REPORTS

INDIA’S LOGISTICS PERFORMANCE INDEX (LPI) 2023

Union Shipping Minister Sarbananda Sonowal recently presented India’s Logistics Performance Index (LPI) 2023 rankings in the Rajya Sabha. India has significantly improved its logistics sector efficiency, securing:

• 22nd rank in the International Shipments category
• 38th rank overall among 139 countries

This marks a major achievement in reducing logistics costs, modernizing infrastructure, and adopting technology-driven solutions.

 

Key Factors Behind India’s LPI Improvement

Policy Reforms: The government has introduced measures to streamline logistics operations and reduce bottlenecks.

Infrastructure Modernization: Investment in ports, highways, railways, and multimodal transport has improved logistics efficiency.

Technology Integration: Use of AI, automation, and RFID tracking has enhanced supply chain transparency.

 

Turnaround Time at Indian Ports: A Global Benchmark

India’s port turnaround time is now 0.9 days—better than several developed economies:

• USA: 1.5 days
• Australia: 1.7 days

Port modernization and automation have played a crucial role in achieving this efficiency.

Key Government Policies Supporting Logistics Growth

PM GatiShakti National Master Plan

• Focuses on multimodal connectivity by integrating rail, road, air, and waterways.
  Aims to reduce logistics costs and drive economic growth by 2024-25.

National Logistics Policy (NLP), 2022

• Enhances last-mile delivery and overall logistics efficiency.
  Encourages supply chain digitization and seamless goods movement.

Logistics Data Bank Project

• Uses RFID technology to track shipping containers in real-time, minimizing delays.
• Adoption of AI & automation in ports and warehouses has further streamlined cargo handling.

Future Vision: India’s Maritime Amrit Kaal Vision 2047

• Sustainability Focus: Development of hydrogen hubs & green shipping.
• Port Expansion: Investment in greenfield & brownfield port projects.
• Boost to Shipbuilding Industry: Strengthening India’s maritime manufacturing capabilities.

Investment Commitments & Economic Impact

• Global Maritime India Summit (GMIS) 2023 saw record-breaking investments:
• ₹10 lakh crore committed for logistics & maritime growth.
• 360 MoUs signed worth ₹35 lakh crore, plus ₹1.68 lakh crore in additional projects.
• These investments are expected to enhance India’s logistics competitiveness, reduce trade costs, and drive economic growth.