The Indian government is taking measures to enhance its Logistics Performance Index (LPI) ranking by briefing the World Bank about recent reforms and initiatives designed to boost logistics efficiency. One notable scheme is the PM Gati Shakti program.
Sumita Dawra, the Special Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT), emphasized the need for an objective methodology in LPI scoring, as the World Bank currently relies on perception surveys.
India’s objective is to break into the top 25 countries in the LPI ranking by 2030. In the latest LPI for 2023, India holds the 38th position out of 139 countries.
Dawra mentioned that DPIIT officials are in continuous dialogue with World Bank officials regarding the need for a more objective methodology. The World Bank assesses countries’ performance using six parameters, including customs, infrastructure, international shipments, logistics competence, tracking and tracing, and timelines.
India is eager for the World Bank to incorporate its interventions and reforms that contribute to improving logistics within the LPI calculations.
Additionally, Dawra revealed that a framework to assess India’s logistics costs has been prepared and will be released by the end of the month. Currently, India’s logistics costs account for 8-14% of its gross domestic product (GDP). A baseline estimate is in place, and future surveys will calculate the costs.
Furthermore, a service improvement group established in March has been addressing logistics-related issues, with 34 out of 80 issues resolved. The group has been dealing with matters from various departments, including revenue, railways, and roads.
As part of the national logistics policy, 106 firms have signed non-disclosure agreements with the government to access data from the ULIP (Unified Logistics Interface Platform). ULIP serves as a digital gateway for industry players to access logistics-related datasets through API integration.
During a recent Network Planning Group (NPG) meeting under the PM Gati Shakti program, six projects were assessed, totaling a project cost of Rs. 14,081 Crore. This brings the total number of projects assessed by the NPG to 106, with a total value of approximately ₹11 Lakh Crore since the launch of the PM GatiShakti approach.
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