Gujarat gets top spot in National Logistics Index 2021 for 3rd time.

• Launched in 2018, the Logistics Ease Across Different States (LEADS) index developed by the Commerce and Industry Ministry and Deloitte ranks states in terms of the logistical support they provided to promote goods trade.
• Gujarat, Haryana and Punjab are the best performing states in terms of mobility of goods and efficiency of logistics chain, according to the third edition of the government's ranking of states based on logistics infrastructure.
• Uttar Pradesh (UP) has shown an outstanding performance in the ease of logistics this year, jumping seven slots from its previous 13th position.
• There was no ranking in 2020 due to the COVID-19 pandemic. On the top ten states in LEADS 2021 report, Gujarat is followed by Haryana, Punjab, Tamil Nadu, Maharashtra, Uttar Pradesh, Odisha, Karnataka, Andhra Pradesh, and Telangana.

About the Logistics Ease Across Different States (LEADS):

• The Logistics Ease Across Different States (LEADS) Index was launched in 2018 by the Commerce and Industry Ministry and Deloitte.
• The LEADS Index ranks states on the score of their logistics services and efficiency that are indicative of economic growth.
• The LEADS 2018 looked into import-export trade and assessed the efficiency of the logistics ecosystem in each state and UT.
• The LEADS 2019 looked into domestic and international trade.
• The LEADS 2021 assessed the domestic and EXIM logistics ecosystem of each state.
• The LEADS 2021 survey was conducted between May to August 2021 that included 21 indicators, 17 perception indicators, and 4 objective indicators.
• The LEADS Index aims to push states into adopting policies that improve their logistics infrastructure.
• The ranking is based on parameters such as the:
• 1. competitiveness of pricing,
• 2. timeliness and
• 3. availability of infrastructure .
• It aims to encourage states to provide the policy push towards improving their logistics-related infrastructure.

Reports of the LEADS Index:

• Gujarat has one again topped a national index of mobility of goods and efficiency of the logistics chain, closely followed by Haryana and Punjab.
• Tamil Nadu came fourth in 2021 against fifth position in 2019, while Maharashtra slipped a place to figure in the fifth ranking against fourth released by commerce and industry ministry.
• Uttar Pradesh leapfrogged seven notches up to rank six in 2021 compared to 13 in 2019, the highest among all states, driven by policy initiatives and higher infra spending in logistics.
• The report said that logistics costs can be brought down to 5% over the next five years from almost 14% now.
• Assam stood last on the chart among states while Jammu Kashmir was ranked first among North Eastern States and Himalayan Union Territories.
• The Western coastal cluster (Gujarat, Maharashtra, and Goa) with the availability of adequate logistics infrastructure leads the Cluster score table, according to the report.
• The LEADS survey 2021 was conducted from May-August 2021 amid the Covid pandemic.
• For each state/UT, ranking was formulated based on a revised methodology that has granular details such as multimodal transport, availability of mobile/internet connectivity, safety and security during transportation, consistency in delivery without damage.

Importance of LEADS:

• India’s logistics costs account for 13-14% of Gross Domestic Product (GDP), compared to 7-8% in developed countries.
• The government was aiming to bring down logistics costs by 5% over the next 5 years.
• Estimated logistics costs in India are currently about 14%, which is quite high compared to 8-10% globally.
• Efficient logistics was pivotal to bring ease and empowerment to businesses as well as citizens.
• Logistics contributed immensely in our fight against Covid-19 by taking essential supplies including liquid Medical Oxygen throughout the country during the 2nd wave.