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Gujarat Punjab AP top in Logistics Industrialized states of Maharashtra, Karnataka and Tamil Nadu lag behind

 Gujarat, 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.

LEADS 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.

Parameters for ranking

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.

Report 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.

Logistics 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.

CTDP 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.

India's 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.

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