Gujarat ranks 1st for third consecutive year in logistics performance index
Gujarat was followed by Haryana, Punjab, Tamil Nadu, and Maharashtra.
A commerce ministry report on Monday pointed out that Gujarat topped the logistics index chart, a marker of the efficiency of logistical services necessary for promoting exports and economic growth. This is the third year in a row that the state remained on top of the rankings.
Gujarat was followed by Haryana, Punjab, Tamil Nadu, and Maharashtra. The report said that it ranked the states on the basis of their logistics ecosystem, while highlighting the key logistics-related challenges faced by the stakeholders and also includes suggestive recommendations. Union minister of commerce Piyush Goyal unveiled the third LEADS (Logistics Ease Across Different States) 2021 report. The LEADS report also aims to enhance focus on improving logistics performance across states which is key to improving the country's trade and reducing transaction cost.
Jammu and Kashmir topped the chart among the northeastern states and Himalayan Union territories while Delhi topped among the rest of the Union territories category.
The report also showed that Uttar Pradesh, Odisha, Karnataka, Andhra Pradesh and Telangana were ranked below fifth-placed Maharashtra in that order. West Bengal, Rajasthan, Madhya Pradesh, Goa, Bihar, Himachal Pradesh and Assam were ranked at 15th, 16th, 17th, 18th, 19th, 20th and 21st respectively. The entire index is based on 21 indicators. The survey was conducted during May-August this year and the exercise garnered 3,771 responses from 1,405 respondents across the country.
Goyal pointed out that the inputs from the report can bring logistics costs down by 5% in the next five years. The current cost is about 13-14% of the GDP, according to estimates. “Rather than just absolute improvement in one state, improvement of logistics across all states will be a force multiplier for the entire logistics ecosystem. Efficient logistics was pivotal to bring ease and empowerment to businesses as well as citizens,” Goyal said.