World Bank’s Logistics Performance Index 2023, India jumps 6 places to Rank 38

World Bank’s Logistics Performance Index 2023: It is a biennial report released by the World Bank since 2010 with an aim to strengthen and streamline the logistics sector across 139 participating countries. Logistics Performance Index 2023 is also important for UPSC Prelims Exam 2023 and UPSC Mains Exam ( GS paper 2- Various governance measures and initiative to develop India’s Logistics sector).

World Bank’s Logistics Performance Index in News

India has climbed six positions to secure the 38th spot among 139 nations in the 7th version of the Logistics Performance Index (LPI 2023) released by the World Bank, indicating an improvement in the country’s logistics ranking.

India’s Performance in Logistics Performance Index 2023

In 2018, India was placed at the 44th position on the LPI index, but it has now jumped to the 38th spot in the latest Logistics Performance Index 2023 ranking. The country’s performance has seen a remarkable improvement since 2014, when it was ranked at 54th on the Logistics Performance Index (LPI).

• Under the leadership of Prime Minister Shri Narendra Modi, India has been implementing several initiatives since 2015 to enhance its logistics efficiency.
• The World Bank has recognized India’s efforts in this regard, and the country has demonstrated significant improvement in four out of six LPI indicators, which is attributed to the various measures implemented in recent years.
• As per the report, India’s infrastructure score improved by five positions, rising from the 52nd rank in 2018 to the 47th rank in 2023.
• Furthermore, India’s ranking for international shipments saw a significant climb, moving from the 44th spot in 2018 to the 22nd spot in 2023.
• Additionally, the country’s logistics competence and equality ranking also improved, moving up four positions to secure the 48th spot.
• India has experienced a considerable increase of 17 places in rankings, whereas it has moved up three spots to reach the 38th position in tracking and tracing.
• The report highlights modernization and digitalization as factors that have enabled emerging economies like India to surpass advanced countries.
• As per the report, the average time for which containers are stored between May and October 2022 was three days for both India and Singapore, which is significantly better than some of the industrialized nations.
  • The dwell time for the US was seven days, while for Germany it was 10 days.\

Logistics Performance Index (LPI) Details

The World Bank released the LPI biennially from 2010 to 2018, but due to the COVID-19 pandemic and a reorganization of the index methodology, the report was skipped in 2020 and was finally published as LPI 2023.

• With the ability to compare logistics performance across 139 countries, LPI 2023 is the latest edition of the report.
• Moreover, for the first time, LPI 2023 features indicators derived from big datasets that track shipments, enabling the measurement of trade speed.

Logistics Performance Index (LPI) Parameters

Logistics Performance Index (LPI) assesses the ease of building dependable supply chain connections and the underlying structural factors that facilitate it. To evaluate logistics performance, the LPI examines six parameters, which are:

• Customs performance
• Infrastructure quality
• Ease of arranging shipments
• Logistics services quality
• Consignment tracking and tracing
• Timeliness of shipments

International LPI

Designed as an interactive benchmarking tool, the LPI aims to assist countries in identifying the obstacles and prospects that they encounter in their trade logistics performance and help them devise strategies to enhance their overall performance. The LPI comprises of two main components.

• Firstly, a global survey of international logistics operators such as global freight forwarders and express carriers, who provide their opinions on the logistical friendliness of the countries they conduct trade with. This International LPI 2023 enables the comparison of logistics performance across 139 nations.
• Secondly, the LPI also relies on detailed and frequent information on maritime shipping, container tracking, air freight and postal activities, which has been gathered by several data partners and made accessible to the LPI.

National Logistics Policy (NLP) 2022 Released

Sharing is caring!