India to pitch for changes to West Bengal Logistics Index

India is looking closely at the World Bank’s Logistics Performance Index to identify gaps and pitch for changes while focussing on areas it is lagging in, people familiar with the development told ET.

Officials said the present perception-based methodology captures India’s reforms such as Logistics Data Bank and Unified Logistics Interface Platform in a limited manner and that information on sample size and sub-indices is not available in the public domain.

The Department for Promotion of Industry and Internal Trade (DPIIT) also plans to onboard a consultancy to liaison with the World Bank to suggest areas of improvement to make the methodology comprehensive that adequately captures India’s reforms in logistics.


India to pitch for changes to West Bengal Logistics Index

“Onboarding of a dedicated team of 5-6 experts is being planned. These experts will help undertake comprehensive research of the gaps and target interventions required across the logistics ecosystem, with focus on the six parameters of the LPI,” said Sumita Dawra, special secretary (logistics), DPIIT.

Customs, infrastructure, timeliness, ease of arranging shipments, quality of logistics services and tracking & tracing are the six parameters of this index.
A need is also felt to understand the approach and methodology in developing the LPI,” the official said, adding that the plan is to identify measures and create a road map for their effective on-ground implementation to enhance India’s performance.
“Reforms like National Logistics Policy and PM GatiShakti National Master Plan are key steps which will further help improve our ranking and need to be adequately captured,” said the official.

Economic think-tank National Council of Applied Economic Research (NCAER) has estimated India’s logistics cost in FY22 between 7.8% and 8.9% of the gross domestic product. The government has over the past few years taken several measures to bring ease of logistics including customs clearances.

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