LOGISTICS EASE ACROSS DIFFERENT STATE (LEADS) 2023

Context:

The Ministry of Commerce & Industry recently released the 5th edition of the “Logistics Ease Across Different State (LEADS) 2023” report, serving as a guide for stakeholders in the Logistics Sector.

1. LEADS is an indigenous data-driven index modelled after the Logistics Performance Index (LPI) of the World Bank assessing logistics infrastructure, services, and human resources across 36 States and UTs.

1. While the LPI completely depended on perception-based surveys, LEADS incorporates both perception and objectivity (judgments based on facts).
2. India’s rank in LPI 2023: - 38th out of 139 countries.

2. LEADS acts as a guiding mechanism for identifying interventions to enhance logistics efficiency at the State/UT level. It aims to foster healthy competition among states and union territories to improve logistics performance.

LEADS Evaluation Criteria: - The report assesses logistics performance based on 3 key pillars:

1. Logistics Infrastructure
2. Logistics Services
3. Operating and Regulatory Environment

Key Highlights of LEADS 2023

1. Achievers: 13 states and Union Territories, including Andhra Pradesh, Karnataka, Tamil Nadu, Chandigarh, and Gujarat, achieved high rankings in the logistics index chart 2023.

• These regions demonstrated efficient logistical services, contributing to export promotion and economic growth.

2. Fast Movers: Kerala, Maharashtra, Madhya Pradesh, Rajasthan, Uttarakhand, Arunachal Pradesh, and Nagaland are acknowledged as fast movers in the logistics index.
3. Aspirers: States and UTs in the aspirers category, such as Goa, Odisha, West Bengal, Bihar, Chhattisgarh, Himachal Pradesh, and Jharkhand, exhibit growth potential in their logistics ecosystem.

• These areas are actively working to enhance their logistical capabilities.

4. Policy Reforms: Emphasis on vital policy reforms, including industry status for logistics, digital initiatives (PM Gati Shakti, Logistics Data Bank, Unified Logistics Interface Platform (ULIP), GST), etc. 

• It called for alignment of State Logistics Policies with the National Logistics Policy.

5. Infrastructure Growth: Since 2014-15, the total length of roads and railway tracks has witnessed a growth of approximately 21% and 9% respectively since 2014-15.
6. Container Facilities Expansion: The total number of Container Freight Stations (CFS) has seen an 18% increase. Inland Container Depots (ICDs) experienced a significant 26% growth between FY18 to FY22.

• A Container Freight Station (CFS) is a warehouse that consolidates (bring together) and deconsolidates cargo before export or import. 
• An Inland Container Depot (ICD) is a dry port that stores containers and handles full and empty containers.

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