India’s Logistics Performance Sees Major Leap in Global Rankings

India has achieved a remarkable milestone in the World Bank’s Logistics Performance Index (LPI) 2023, securing the 22nd rank in the International Shipments category and moving up to 38th place overall among 139 countries. This improvement underscores the country’s focused efforts on enhancing logistics efficiency, reducing costs, and integrating advanced technology.

What Led to India’s Rise in the LPI Rankings?

India’s progress in the logistics sector can be attributed to multiple factors, including policy reforms, technology-driven initiatives, and improved infrastructure. The country has significantly enhanced its global trade competitiveness by streamlining supply chains, cutting delays, and boosting efficiency in freight movement.

• International Shipments Rank Improvement: In 2018, India was ranked 44th in the International Shipments category. The jump to 22nd place in 2023 highlights the success of government policies aimed at easing global trade.

• Turnaround Time at Ports: Indian ports have significantly reduced processing times, with an average turnaround time of 0.9 days, outperforming major economies such as the USA (1.5 days), Australia (1.7 days), and Germany (1.3 days). This has been possible due to port modernization and automation.

How Have Government Policies Boosted Logistics Growth?

The government has launched key policy initiatives aimed at strengthening India’s logistics infrastructure and reducing inefficiencies. Some of the most impactful policies include:

• PM GatiShakti National Master Plan: Launched in October 2021, this initiative focuses on multimodal connectivity to integrate various transport networks and improve cargo movement. The aim is to reduce logistics costs and drive economic growth by 2024-25.

• National Logistics Policy (NLP): Introduced in September 2022, this policy seeks to address last-mile delivery challenges, reduce bottlenecks, and enhance overall logistics efficiency. The policy plays a crucial role in making India’s logistics sector more structured and cost-effective.

What Role Does Technology Play in India’s Logistics Transformation?

Technology has been a game-changer in India’s logistics sector. Some of the significant tech-driven improvements include:

• Logistics Data Bank Project: Implemented by NICDC, this initiative uses radio frequency identification (RFID) tags to track containers in real time. This has significantly reduced delays and improved supply chain transparency.

• Automation and AI Integration: Indian ports and warehouses are increasingly adopting automation, AI, and digital tracking systems to enhance cargo handling efficiency.

What is India’s Vision for the Future of Logistics?

India is planning long-term improvements in logistics under the Maritime Amrit Kaal Vision 2047, which aims to position the country as a global logistics hub. Key focus areas include:

• Port Capacity Expansion: The government is working on greenfield and brownfield developments to accommodate growing trade demands.
• Sustainability Measures: Plans are in place to develop hydrogen hubs and implement eco-friendly logistics solutions.
• Boosting Shipbuilding: India aims to become a leading player in shipbuilding and repair, increasing its presence in the global maritime industry.

The Road Ahead

India’s consistent rise in the World Bank’s Logistics Performance Index from 54th in 2014 to 38th in 2023 is a reflection of its policy-driven and technology-backed transformation. With further advancements in infrastructure, digitalization, and sustainability, India is poised to strengthen its position as a key player in global trade logistics.

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