Punjab and Andhra Pradesh are the best performing states in terms of mobility
of goods and efficiency of logistics chain, according to a new ranking of states
brought out by the government. Karnataka secured the fourth position while
Maharashtra and Tamil Nadu secured the fifth and eighth position.
Significantly both Maharashtra and Tamil Nadu
possess sufficient port infrastructure. Put together both the states have five
major ports besides a number of private ports.
rank states in terms of logistical support to promote goods trade
The new Logistics Ease Across Different States (LEADS) index developed
by the Commerce and Industry Ministry and Deloitte ranked states in terms of
the logistical support they provided to promote goods trade.
The ranking is based on parameters such as the
competitiveness of pricing, timeliness and availability of infrastructure and
that of services, among others. It aims to encourage states to provide the
policy push towards improving their logistics-related infrastructure.
Karnataka, Maharashtra, Haryana, Rajasthan, Tamil
Nadu, Telangana and Chhattisgarh made up the remaining top 10. Assam, Bihar and
Jammu & Kashmir featured on the bottom of the list, owing to the lack of
good transport facilities, scarcity of logistics services and bad track record in timeliness.
was made after inputs of hundreds of respondents in the logistics segment
The report was made after inputs of hundreds of
respondents in the logistics segment, including shippers, logistics service
providers, terminal operators and transporters from, across the country. The
report referred to various industry estimates putting the size of the Indian
logistics market at 100-125 billion US dollars and growing at about 5 per cent
annually. It also noted that logistics services and infrastructure was highly
concentrated in 15 states and Union Territories, which account for 90 per cent
of total exports by value.
segment crucial and yet weak part of India’s export chain
The former Commerce and Industry Minister Suresh
Prabhu who had launched the project of assessing the capability of individual
states had said the logistics segment was a crucial and yet weak part of
India’s export chain. “The commerce ministry is looking at logistics as a
separate subject. We need to identify the cost of logistics. This includes the
turnaround time at ports, cost of power and the time it takes for goods to
reach their destination.
suggests to the states to remove red tape and inefficiencies
At the third meeting of the Council for Trade
Development and Promotion(CTDP) — a meet of trade ministers from all states
with the Centre — held earlier in the day, the ministry has suggested that
states look into these issues and remove red tape and inefficiencies. A senior
commerce ministry official said discussions with the ministry of road transport
and highways and ministry of shipping have been held on the issue and more
meetings are expected over the next few weeks.
position in the annual World Bank’s Logistics Performance Index
On the global front, India's position in the
annual World Bank’s Logistics Performance Index had improved to 35 in 2016, the
last time the report was published. This was a jump from the 54th spot India
had occupied in the previous report.