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  • Oct 15, 2022
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LEADS Index

Why in News?

Recently, the Ministry of Commerce and Industry has released the Logistics Ease Across Different States (LEADS) Report 2022.

  • The LEADS is an indigenous data-driven index to assess logistics infrastructure, services, and human resources across all 36 States and UTs.
  • LEADS continues to act as a guiding & bridging mechanism for the identification of interventions enhancing logistics efficiency at State/UTs. It reflects positively on international indices, like Logistics Performance Index.
  • The first logistics report was released in 2018.

What are the Key Findings?

  • Unlike the previous versions of LEADS which were based on ranking systems for all states, LEADS 2022 has adopted a classification-based grading, states have been now classified under four categories viz coastal states, hinterland/landlocked states, north-eastern states, and Union Territories.
    • For the assessment of how well a State or UT has performed in comparison to the Top State/UT within the specific cluster.
  • Three performance categories namely:
    • Achievers: States/UTs achieving 90% or more percentage.
      • Andhra Pradesh, Assam, Chandigarh, Delhi, Haryana, Himachal Pradesh, Karnataka, Maharashtra, Odisha, Punjab, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand and Gujarat are in the achievers Category.
        • Maharashtra tops amongst the “Achievers” states.
      • Fast Movers: States/UTs achieving percentage scores between 80-90%.
        • Kerala, Madhya Pradesh, Rajasthan, Puducherry, Sikkim and Tripura.
      • Aspirers: States/UTs achieving percentage scores below 80% have been made.
    • The LEADS 2022 survey report would assist PM Gati-Shakti National Master Plan (PMGS-NMP) and National Logistics Policy (NLP) to mapping of logistics infrastructure, services, and regulatory environment enabling State Governments to identify and fill the gaps and achieve data-driven multimodal connectivity.
      • PMGS-NMP has potential to save over Rs. 10 Lakh Crore annually by improving logistics efficiency and will bringing down the logistic cost to single digits in the coming years.
      • NMP to help remotest areas undertake integrated infrastructure planning and close development gaps. Through PM Gati-Shakti 197 critical infrastructure gap projects identified.

What is Logistics Performance Index?

  • The Logistics Performance Index (LPI), developed by the World Bank Group, is an interactive benchmarking tool created to help countries identify the challenges and opportunities they face in their performance on trade logistics and what they can do to improve their performance.
  • LPI is the weighted average of the country’s scores on the six key dimensions:
    • Efficiency of the clearance process (i.e., speed, simplicity and predictability of formalities) by border control agencies, including customs.
    • Quality of trade and transport related infrastructure (e.g., ports, railroads, roads, information technology).
    • Ease of arranging competitively priced shipments.
    • Competence and quality of logistics services (e.g., transport operators, customs brokers).
    • Ability to track and trace consignments.
    • Timeliness of shipments in reaching destinations within the scheduled or expected delivery time.
    • India ranked 44th on the LPI in 2018. As of 2022 no new data has been published.

What are the Initiatives Related to Logistics?

  • Multimodal Transportation of Goods Act, 1993.
  • PM Gati Shakti Scheme
  • Multi Modal Logistics Parks
  • LEADS Report
  • Dedicated Freight Corridor
  • Sagarmala Projects
  • Bharatmala Project

UPSC Civil Services Examination Previous Year Question (PYQ)

  1. The Gati-Shakti Yojana needs meticulous coordination between the government and the private sector to achieve the goal of connectivity. Discuss. (2022)