India Climbs Six Places on World Bank's Logistics Performance Index

The PM Gati Shakti initiative, which was announced in 2021, appears to be bearing fruit as India improved six spots to rank 38 out of 139 nations in the World Bank's 2023 Logistic Performance Index.

Even if the nation's performance significantly improved from 2014, when it was placed 54 on the index, it was still ranked 44 in 2018.

In order to lower logistics costs and strengthen the economy by 2024–2025, Prime Minister Narendra Modi introduced the PM Gati Shakti initiatives in October 2021.

In order to ensure speedy last-mile delivery, eliminate transportation-related problems, save manufacturers time and money, reduce agricultural product waste, and assure the appropriate speed in the logistics sector, he introduced the National Logistics Policy (NLP) last year.

Here are significant findings from the report:

India's infrastructure dropped five spots from 52 to 47 in 2023. India rose four spots to 48th in terms of logistics competency and equality and jumped from 44th to 22nd place for international shipments in 2019.

India moved up three spots in tracking and tracing while advancing 17 spots in timelines.

Modernity and digitization, which the research cites as reasons for rising economies like India to surpass advanced countries, could be two key factors for the country's increase in the index.

"The government of India has invested in trade-related soft and hard infrastructure connecting port gateways on both coasts to the economic poles in the hinterland," the report stated.

"Since 2015, the Government of India has invested in trade-related soft and hard infrastructure connecting port gateways on both coasts to the economic poles in the hinterland. Technology has been a critical component of this effort, with implementation under a public-private partnership of a supply chain visibility platform, which contributed to remarkable reductions of delays. NICDC Logistics Data Services Limited applies radio frequency identification tags to containers and offers consignees end-to-end tracking of their supply chain," the report added.

The average container stay time between May and October 2022 was three days for Singapore and India, which is significantly less time than some of the industrialised nations.

The report said: "The emerging economies with the shortest delays have gone beyond these packages and have implemented bold tracking and tracing solutions. India's very low dwell time (2.6 days) is one example."

According to the research, dwell time is the amount of time a ship stays at a certain port or terminal. Additionally, it could be used to describe the length of time a container or shipment remains at a port or terminal before being loaded onto a ship or after being unloaded.

139 nations are included in the Logistics Performance Index (LPI). It evaluates structural elements that facilitate the creation of trustworthy supply chain linkages, including the standard of logistical services, infrastructure for commerce and transportation, and border controls.

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