Context:

Recently, the Union Minister of Commerce and Industry released the ‘Logistics Ease Across Different States (LEADS) 2024’ Report. 

More on the News

• The Union Minister of Commerce & Industry emphasized on the adoption of advanced technologies like Artificial Intelligence, Machine Learning, and Data Analytics to drive future success and competitiveness.
• He encouraged States to leverage public-private partnerships (PPPs) and establish multi-modal hubs for in-land container depots through transparent land bidding to enhance efficiency and reduce costs.
• He further urged the logistics sector to adopt the LEAD framework—Longevity, Efficiency and Effectiveness, Accessibility and Accountability, and Digitalisation—to transform the logistics sector and contribute to a "Viksit Bharat" by 2047.

About the LEADS Report and Index

The LEADS index measures the efficiency of logistics services at the State/UT level, which is important for boosting exports and economic growth.

The LEADS 2024 is the 6th edition of the Report, which was first released in 2018 and has evolved over time. 

The LEADS 2024 report evaluates logistics performance across four key pillars:

• Logistics Infrastructure
• Logistics Services
• Operating and Regulatory Environment
• Sustainable Logistics (newly added)

The index aims to improve logistics performance across states, which helps boost trade and reduce transaction costs.

LEADS was conceived on the lines of the World Bank's Logistics Performance Index (LPI) in 2018.

• According to the World Bank's 'Logistics Performance Index Report (2023), India ranks 38 out of 139 countries.

Unlike LPI, which is based entirely on perception-based surveys, LEADS combines both perception and facts, making it more thorough and reliable.

Performance Highlights of LEADS 2024:

Coastal Group

• Achievers: Gujarat, Karnataka, Maharashtra, Odisha, Tamil Nadu
• Fast Movers: Andhra Pradesh, Goa
• Aspirers: Kerala, West Bengal.

Landlocked Group

• Achievers: Haryana, Telangana, Uttar Pradesh, Uttarakhand
• Fast Movers: Bihar, Himachal Pradesh, Madhya Pradesh, Punjab, Rajasthan
• Aspirers: Chhattisgarh, Jharkhand.

North-Eastern Group

• Achievers: Assam, Arunachal Pradesh
• Fast Movers: Meghalaya, Mizoram, Nagaland, Sikkim, Tripura
• Aspirers: Manipur

Union Territories

• Achievers: Chandigarh, Delhi
• Fast Movers: Dadra and Nagar Haveli and Daman and Diu, Jammu and Kashmir, Lakshadweep, Puducherry
• Aspirers: Andaman and Nicobar Islands, Ladakh.

Government Initiatives for the Logistics Sector Development

• Sagarmala Project: Launched by the Ministry of Ports, Shipping and Waterway in 2015 to develop the port infrastructure and to reduce logistics costs for EXIM and domestic trade with minimal infrastructure investment.
• Bharatmala Project: It is the umbrella program for the highways sector launched by the Ministry of Road Transport and Highways in 2017, to improve road connectivity across the country.
• National Logistics Policy (NLP): Launched in 2022, it is a comprehensive effort to address issues of high cost and inefficiency by laying down an overarching interdisciplinary, cross-sectoral and multi-jurisdictional framework for the development of the entire logistics ecosystem. 
• Dedicated Freight Corridors (DFCs): It was announced by the Govt, in the Railway Budget for 2005-06. They are high-capacity railway corridors exclusively meant for the transportation of goods and commodities.
• PM GatiShakti National Master Plan (PMGS-NMP):  Launched in 2021, it is a Whole-of-Government approach adopted to facilitate integrated planning of multimodal infrastructure through collaboration among various Ministries.