Gujarat Tops National Index of Logistics for Third Time

Gujarat has once again topped a national index of mobility of goods and efficiency of logistics chain, closely followed by Haryana and Punjab. The state has been ranked the highest in the third edition of the Logistics Ease Across Different States index, which is based on indicators such as infrastructure, services, timelines, traceability, competitiveness, security, operating environment and efficiency of regulatory processes.

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 infrastructure spending in logistics.

The index is developed by the commerce and industry ministry along with EY.

While releasing the report on Monday, commerce and industry minister Piyush Goyal said logistics costs can be brought down to 5% over the next five years from almost 14% now. As per the report, there is a need for a single window clearance system for logistics to streamline the approval and clearance process as development of logistics-related infrastructures such as a Warehouse or an ICD/ CFS requires a long list of operating and regulatory clearances such as environment from the states.

“Delay and multiplicity is an impediment to attracting investment in the logistics infrastructure sector and for enabling efficient logistics,” it said, as it called for fast-track resolution of grievances faced by stakeholders in the logistics ecosystem.

Assam stood last on the chart among states while Jammu & Kashmir was ranked first among North Eastern states and Himalayan UTs.

The LEADS survey 2021 was conducted from May-August 2021 amid the pandemic. “The whole exercise garnered 3,771 responses from 1,405 respondents across the country,” the ministry said in the report.

For each state/UT, ranking was 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.

Since its inception in 2018, said Goyal, each year’s LEADS report has followed a progressive methodology to provide granular insight into logistics performance. “LEADS 2021 has gone two steps ahead in analysis of domestic and EXIM logistics ecosystem of the state,” he added.

The report is structured on three dimensions which collectively influence logistics ease — infrastructure, services and operating and regulatory environment — and are further categorised into 17 parameters.

An inter-cluster comparison has been undertaken basis the respective indicator scores among the clusters.

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