Context: The Ministry of Commerce and Industry has released the 6th edition of the ‘Logistics Ease Across Different States (LEADS) 2024’ Report, ranking various states on the parameter of logistics performance.
Relevance of the Topic: Prelims: Index and report based questions.
About LEADS
- The index is an indicator of the efficiency of logistical services necessary for promoting exports and economic growth.
- The report divides states into:
- Three broad criteria i.e., Achievers, Front movers and Aspirers, based on their performance.
- Groups: Coastal, Landlocked, North-Eastern, and Union Territories.
- The report ranks states on the basis of four key pillars -- Logistics Infrastructure, Logistics Services, Operating and Regulatory Environment, and the newly introduced Sustainable Logistics.
Performance of States (2024)
- Achievers:
- 13 States and Union Territories bagged the top rank of ‘achievers’, topped by Gujarat.
- Gujarat, Karnataka, Maharashtra, Odisha, Tamil Nadu, Delhi, Chandigarh, Haryana, Telangana, Uttar Pradesh, Uttarakhand, Assam and Arunachal Pradesh.
- Front Movers: Andhra Pradesh, Goa, Bihar, Himachal Pradesh, Madhya Pradesh, Punjab, Rajasthan, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Dadar and Nagar Haveli, Jammu and Kashmir, Lakshadweep and Puducherry.
- Aspirers: Kerala, West Bengal, Chhattisgarh, Jharkhand, Andaman and Nicobar and Ladakh.
Key Recommendations
Presently, India's logistics cost is 13-14 per cent of GDP which is extremely high.
- LEAD Framework: Report suggests logistics sector to adopt LEAD framework – Longevity, Efficiency and Effectiveness, Accessibility and Accountability and Digitalisation of processes to transform the logistics sector.
- Public Private Partnership: The report suggests public private partnership as the key tool to enhance logistic performance of India.
- Technological support: The report claims AI, Big Data and satellite communication as vital tools to boost logistic performance.
- Green Logistics initiatives: There is an advocacy to support green initiatives like hybrid fuel and electric vehicles for logistics to make a smooth transition in the logistic sector.