The Department for Promotion of Industry and Internal Trade (DPIIT) has raised concerns about the World Bank’s Logistics Performance Index (LPI) methodology, stating that it does not fully account for India’s logistics reforms, such as the Logistics Data Bank and Unified Logistics Interface Platform. They have proposed engaging a consultancy firm to work with the World Bank to enhance the methodology and make it more comprehensive.
Sumita Dawra, special secretary (logistics) at DPIIT, revealed plans to bring in a team of experts to conduct thorough research on the gaps and necessary interventions across India’s logistics ecosystem, focusing on the six parameters of the LPI. The government aims to improve India’s performance on the index and secure a position within the top 25 countries by 2030.
India’s ranking on the LPI improved to 38 in 2023, up from 44 in 2018 and 54 in 2014, with its position for international shipments climbing to 22 in 2023. This progress has been attributed to modernization and digitalization efforts, as well as key initiatives such as the National Logistics Policy and PM GatiShakti National Master Plan. The National Council of Applied Economic Research (NCAER) has estimated India’s logistics cost for FY22 to be in the range of 7.8-8.9% of the gross domestic product, and the government has implemented various measures to streamline logistics processes in recent years.
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