Logistics Performance Index, 2023

February 14, 2025

Union Shipping Minister Sarbananda Sonowal recently briefed Rajya Sabha about Logistics Performance Index. India has made strides in its logistics sector, achieving notable rankings in the World Bank’s Logistics Performance Index (LPI) 2023. The country is now 22nd in the International Shipments category and 38th overall among 139 countries. This progress shows India’s strides toward increasing logistics efficiency, reducing costs, and integrating advanced technology into its supply chains.

Factors Contributing to India’s LPI Improvement

India’s rise in the LPI rankings can be attributed to several key factors.
Policy reforms have played important role in streamlining logistics operations.
Initiatives aimed at modernising infrastructure and reducing bottlenecks have improved the overall logistics framework.
The implementation of technology-driven solutions has also been vital in enhancing efficiency and transparency.

Turnaround Time at Indian Ports

Indian ports have demonstrated remarkable improvement in turnaround time.
The average turnaround time is now 0.9 days, which is better than that of several major economies, including the USA at 1.5 days and Australia at 1.7 days.
This improvement reflects the effectiveness of port modernisation and automation efforts.

Key Government Policies Supporting Logistics Growth

The Government of India has introduced several impactful policies to strengthen the logistics sector.
The PM GatiShakti National Master Plan focuses on multimodal connectivity, which aims to integrate various transport networks. This initiative is set to reduce logistics costs and promote economic growth by 2024-25.
The National Logistics Policy, launched in September 2022, seeks to enhance last-mile delivery and overall logistics efficiency.

Technological Advancements in Logistics

Technology has revolutionised India’s logistics landscape. The Logistics Data Bank Project uses RFID technology to track containers in real-time, reducing delays. The adoption of automation and artificial intelligence in ports and warehouses has further enhanced cargo handling efficiency, making logistics operations more streamlined.

Future Vision for India’s Logistics Sector

India’s Maritime Amrit Kaal Vision 2047 outlines long-term aspirations for the logistics sector. This vision includes expanding port capacity through greenfield and brownfield developments, promoting sustainability through hydrogen hubs, and enhancing shipbuilding capabilities.

Investment Commitments and Economic Growth

The Global Maritime India Summit (GMIS) 2023 attracted substantial investment commitments, amounting to ₹10 lakh crore. This includes 360 Memoranda of About (MoUs) with an investment commitment of ₹8.35 lakh crore, alongside additional projects worth ₹1.68 lakh crore. Such investments are expected to further boost India’s logistics capabilities and economic growth.

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