Context
Recently, the Ministry of Commerce and Industry released the Logistics Ease Across Different States (LEADS) Report (Index) 2021.
About LEADS Report
- The LEADS report is aimed at gauging the logistics performance of states and Union Territories (UT) and identifying areas where they can improve logistics performance.
- It was launched in the year 2018.
- States are ranked based on the quality and strength of key infrastructures such as roads, railways, and warehouses and the convenience of goods including the security of goods, speed of terminal services, and law enforcement.
- The report is structured in conjunction with the three dimensions which collectively influence logistics ease--Infrastructure, Services, and Operating and Regulatory Environment which are further divided into 17 parameters.
Why does India need that?
- India’s transportation costs are estimated at 13-14 percent of GDP, compared to 7-8 percent in developed countries.
- The government aims to reduce logistics costs by 5 percent over the next five years.
- The average cost of transportation in India is currently about 14%, which is very high compared to 8-10% globally.
- Efficient logistics was pivotal to bringing ease and empowerment to businesses as well as citizens.
- Logistics contributed immensely to our fight against Covid-19 by taking essential supplies including liquid Medical Oxygen throughout the country during the 2nd wave.
States / UTs Ranking
- Gujarat, Haryana, and Punjab emerged as the top performers in the LEADS 2021 index respectively.
- For the third year in a row, Gujarat remains top in rank.
- Delhi is at the top of the list among other UTs.
- In the North-East states and the Himalayan Region, Jammu and Kashmir are the highest positions followed by Sikkim and Meghalaya.
Related Initiatives
- PM GatiShakti Master Plan
- Sagarmala Project
- Dedicated Freight Corridor (DFC)
- Bharatmala Pariyojana
- E-Way Bill Integration with FASTag, RFID
