India can reduce logistics cost by 5% in the next 5 years: Piyush Goyal

The Ministry of Commerce and Industry today released the annual report on Logistics Ease Across Different States (LEADS) 2021. Piyush Goyal, the Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, said that the inputs given by the study can lead the way to bring down logistics cost by 5% over the next five years. He added that India is committed to build modern infrastructure for the 21st century, at a pace never seen before.

Referring to the recently launched PM GatiShakti Master Plan, he said that it would revolutionise the next generation of multimodal infrastructure development in the country. Lauding Prime Minister Narendra Modi, the minister said that the initiatives taken by him in Gujarat for 13 years had laid the foundation for Gujarat to consistently stay at the top of the chart in LEADS report

The speed of highway construction has increased three -fold from around 12km/day in 2013-14 to 37km/day in 2020-21 and there has been a four-fold increase in Railways capex from Rs 54,000 crore in 2013-14 to Rs 2.15 lakh crore in 2021-22.

Observing that logistics is an enabler of multiple visions, from Make in India for the World to Last- Mile Delivery, the Minister said that to achieve ambitious targets the country needs expressways of land, air and water.

Logistics improvement across all states vital 
"Rather than just absolute improvement in one State, improvement of logistics across all States will be a force multiplier for the entire logistics ecosystem," he said. He lauded Gujarat, Haryana and Punjab for acquiring the top 3 positions respectively.

Photo (Piyush Goyal/Twitter)

According to the Minister, since its inception in 2018, each year the LEADS report has followed a progressive methodology to provide a granular insight on the logistics performance at State/UTs level. "LEADS 2021 has gone two steps ahead in analysis of domestic and EXIM logistics ecosystem of the state," he added.

The Minister said that states have Indispensable role in improving the logistics ecosystem of India. He outlined a number of suggestions for States including framing of a State Logistics Policy & Logistics Master Plan, use single-window clearance system for logistics establishment of grievance redressal mechanism and enabling if skilling in logistics through State skilling infrastructure

He is of the opinion that the LEADS report would be a handy and practical guide to identify strengths, opportunities and improve the logistics performance of States.

The report ranks the states on the basis of their logistics ecosystem, highlights the key logistics- related challenges faced by the stakeholders and includes suggestive recommendations. The LEADS survey 2021 was conducted from May to August 2021 in a challenging environment when the Covid crisis was being fought across multiple fronts. It garnered 3,771 responses from 1,405 respondents across the country. For representation purposes, states have been ranked in three separate classes including ‘North Eastern States & Himalayan UTs’ and ‘Other UTs’ group.

Gujarat, Haryana and Punjab have emerged as the top performers in the LEADS 2021 index respectively. Proactive policies, well-developed infrastructure and services driven by a responsive Government have helped Gujarat to maintain its rank. Haryana has secured the second position, followed by Punjab.

Within the North Eastern States and Himalayan Region, Jammu & Kashmir is the top ranker followed by Sikkim and Meghalaya. Delhi stands at the top rank among Other UTs. Uttar Pradesh, Uttarakhand and Jharkhand have witnessed a remarkable improvement in their ranks compared to 2019 LEADS ranking and have emerged as the top improvers.

The report consists of specific section on States and UTs giving detailed analysis of their performance in the LEADS, including issues and challenges being faced by stakeholders as well as suggestions to mitigate the issues.

States/UTs are encouraged to examine and evaluate the findings of the report and to formulate a suitable strategy and a prioritised action plan for improving logistics performance.

With the efforts in the right direction, it is hoped that the vision of logistics cost will be reduced by 5% in the next five years. This will ensure that the Logistics sector serves as an engine of growth and a key driver for transforming India into a five trillion-dollar economy.