On 2018, India was ranked 44th on the index, but has recently risen to 38th on the 2023 list.
As a consequence of major investments in both soft and hard infrastructure, as well as technology, India has risen six places on the World Bank’s Logistic Performance Index 2023, placing 38th out of 139 nations.
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On 2018, India was ranked 44th on the index, but has recently risen to 38th on the 2023 list. India’s performance has improved dramatically since 2014, when it was rated 54th on the LPI.
In October 2021, Prime Minister Narendra Modi’s government unveiled the PM Gati Shakti initiative, a national master plan for multimodal connectivity, with the goal of reducing logistics costs and boosting the economy by 2024-25.
The prime minister announced the National Logistics Policy in 2022 in order to provide speedy last-mile delivery, eliminate transportation-related difficulties, save time and money in the manufacturing sector, and ensure desired speed in the logistics sector.
These policy measures are bearing fruit, as seen by India’s increase in LPI and other indicators. According to the research, India’s infrastructure score rose five places from 52nd in 2018 to 47th in 2023. It advanced four positions to 22nd in foreign shipments in 2023, up from 44th in 2018.
India jumped 17 places in the timelines rankings, while moving up three places in tracking and tracing to 38th. The research cites modernisation and digitisation as factors for rising economies such as India to overtake advanced countries.
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According to the research, “since 2015, the Government of India has invested in trade-related soft and hard infrastructure connecting port gateways on both coasts to economic poles in the hinterland.” Technology has been a crucial component of this effort, with the implementation of a supply chain visibility platform through a public-private collaboration contributing to significant reductions in delays.
NICDC Logistics Data Services Ltd. Adds radio frequency identification tags to containers and provides consignees with end-to-end supply chain tracking.
According to the analysis, the average stay period for containers in India and Singapore between May and October 2022 was three days, far better than in several industrialised countries. The US had a seven-day stay, whereas Germany had a ten-day stay.
“The emerging economies with the shortest delays have gone beyond these packages and implemented bold tracking and tracing solutions,” according to the report. One example is India’s extremely short stay time (2.6 days).”
According to the research, “with the introduction of cargo tracking, dwell time in Visakhapatnam’s eastern port fell from 32.4 days in 2015 to 5.3 days in 2019.”
Dwell time is the amount of time a vessel spends in a particular port or terminal. It may also refer to the period of time a container or cargo spends at a port or terminal before or after being loaded onto or unloaded from a vessel. Shipping container vessels work on a timetable, and delays in any one port affect the entire operation.
The lower the vessel and marine-terminal operational expenses, the shorter the dwell time. The LPI spans 139 nations and assesses the ease of establishing trustworthy supply chain links as well as the structural variables that enable it, such as the quality of logistics services, trade and transportation infrastructure, and border restrictions.
“End-to-end supply chain digitalisation, particularly in emerging economies, enables countries to reduce port delays by up to 70% when compared to developed countries.”
Furthermore, demand for green logistics is increasing, with 75% of shippers seeking environmentally friendly choices when exporting to high-income nations, according to the survey. “While shipping consumes the majority of time, the most significant delays occur at seaports, airports, and multimodal facilities.” Policies aimed at these facilities can assist increase reliability,” said Christina Wiederer, co-author of the paper and senior economist in the World Bank Group’s macroeconomics, trade, and investment worldwide practice.
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