According to a commerce ministry report released on Monday, 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.
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 costs.
Gujarat was followed by Haryana, Punjab, Tamil Nadu, and Maharashtra.
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 overall index is based on 21 indicators. The survey was conducted during May-August 2021. The whole exercise garnered 3,771 responses from 1,405 respondents across the country.
Speaking at the launch of the report, the Commerce and Industry Minister 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.
When asked about the issue of container shortage, the minister said now the international trade is picking up “very well” and it augurs well for the Indian economy.
“India alone will be looking at 40 per cent plus growth in our exports and almost a 25 per cent growth in our imports,” he said, adding the container problem was happening across the globe and the ministry is working with shipping lines and container operators. It is also trying to bring empty containers, customs is trying to speed up the processes, railways is helping to move empty containers at subsidised prices, he added.
With all these efforts, prices have stabilised and now gradually started coming down, Goyal said. “We do hope that in the months to come, we quickly see things stabilizing to normalcy,” he noted.