India’s logistics sector

In 2023, the World Bank’s Logistics Performance Index (LPI) ranked India 38th out of 139 countries, an improvement from the 54th rank in 2014. India’s logistics sector is projected to reach USD 380 billion by 2025.

Government Initiatives to Boost the Logistics Sector:

• National Logistics Policy (NLP): Launched in 2022, it aims to lower the logistics costs from the current 14-18% of India’s GDP to approximately 8% by 2030.
• PM GatiShakti National Master Plan: This plan provides a detailed database of the infrastructure, alongside ongoing and future projects across various ministries or departments of the Central Government and States/UTs. It is designed to enhance India’s freight logistics.
• Multi-Modal Logistics Parks (MMLPs): These parks are developed to facilitate efficient inter-modal freight movement, aiming to reduce freight costs and transit times.
• Logistic Efficiency Enhancement Programme (LEEP): This programme focuses on improving the freight transportation in India by optimizing costs, time, tracking, and transferability of consignments.
• Logistics Ease Across Different States (LEADS) index: This index assesses the logistics performance of various states based on logistics infrastructure, services, and the operating and regulatory environment.

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