India was ranked 44th on the Logistics Performance Index (LPI) index in 2018 but has now risen to the 38th position in the Logistics Performance Index 2023. The performance of the nation has significantly improved as a result of investments in infrastructure and technology according to the report.
Logistics Performance Index (LPI) – The Logistics Performance Index (LPI) is a tool for measuring countries’ performance in terms of trade and logistics. It was developed to help countries recognise the opportunities and difficulties they face and what they can do to enhance their performance. 2023 LPI includes a comparative analysis of 139 nations.
According to the research, India’s infrastructure has moved up five spots, from 52nd place in 2018 to 47th place in 2023. Additionally, India’s position in terms of international shipments improved significantly, rising from position 44 in 2018 to position 22 in 2023. The nation’s equity and logistics proficiency rankings both improved, rising four spots to claim the 48th spot. India has advanced significantly by 17 places in the rankings, while moving up three spaces to take the 38th slot in tracking and tracing.
These positive outcomes were aided by the policies and initiatives of Prime Minister Narendra Modi; in 2021, the PM Gati Shakti programme, a national master plan for multimodal connectivity, was formulated with the goal of lowering logistics costs and boosting the economy by 2024–2025. The National Logistics Policy (NLP) was launched to guarantee swift last-mile delivery, put a stop to transportation-related difficulties, save manufacturing industry time and money, and assure the needed speed in the logistics sector. These policy changes had a significant impact, which led to an increase in India’s LPI and other indicators.
The report also emphasizes modernisation and digitization as elements that have allowed developing economies like India to surpass those of the advanced nations. India and Singapore both had an average wait time for containers of three days between May and October 2022, which is much less than any of the industrialised countries like the US and Germany (the US had an average stay time of seven days and Germany had an average dwell time of ten days), showing a proportionate relationship between the operating costs of the ship and the dwell time.
India, in 2023, initiated a variety of policies and guidelines for the shipping and logistics sector to improve standard and output in an efficient manner with sustainability at the forefront of all efforts. In addition to improving competency, we can also look forward to the expansion of economic options giving a boost to the economy due to such initiatives.