According to the World Bank’s (WB) report titled Connecting to Compete 2023: Trade Logistics in an Uncertain Global Economy – the Logistics Performance Index (LPI) and its indicators” released on April 21, 2023, India’s rank increased by 6 places to 38 in the index, from 44 in 2018.
- Singapore topped the ranking followed by Finland at second, and Denmark at third.
- This is the 7th edition of Connecting to Compet, a report that summarize the findings from the new dataset for LPI and its component indicators.
About LPI Report:
i.The LPI report measures the countries’ ability to move goods across borders with speed and reliability.
ii.The seventh edition of LPI 2023 report, comes after three years due to Covid-19 pandemic-led disruptions.
iii.The LPI, which covers 139 countries, and measures the ease of establishing reliable supply chain connections and the structural factors that make it possible, such as the quality of logistics services, trade- and transport-related infrastructure, and border controls.
Key Points:
i.India share the 38th rank with Lithuania, Portugal , Saudi Arabia, Türkiye.
ii.GoI (Government of India) had announced a National Master Plan, PM Gati Shakti for multi-modal connectivity, in October 2021 to reduce logistics cost and boost the economy by 2024-25.
Top 5 Economy over LPI 2023:
| Economy | LPI | |
|---|---|---|
| Grouped Rank | Score | |
| India | 38 | 3.4 |
| Singapore | 1 | 4.3 |
| Finland | 2 | 4.2 |
| Denmark | 3 | 4.1 |
| Germany | 3 | 4.1 |
| Netherlands | 3 | 4.1 |
The World Bank’s LPI analyzes countries through six indicators:
- The efficiency of customs and border management clearance.
- The quality of trade- and transport-related infrastructure.
- The ease of arranging competitively priced international shipments.
- The competence and quality of logistics services.
- The ability to track and trace consignments.
- The frequency with which shipments reach consignees within the scheduled or expected delivery time.
India’s score and rank under different Categories of LPI
| Indicator | India’s Score | Rank (2023) | Rank(2018) |
|---|---|---|---|
| Customs | 3.0 | 47 | 40 |
| Infrastructure | 3.2 | 47 | 52 |
| International shipments | 3.5 | 22 | 44 |
| Logistics competence and equality | 3.5 | 38 | 42 |
| Timeliness | 3.6 | 35 | 52 |
| Tracking and tracing | 3.4 | 41 | 38 |
Additional info:
According to LPI 2023, end-to-end supply chain digitalization, especially in emerging economies, is allowing countries to shorten port delays by up to 70% compared to those in developed countries.
Moreover, demand for green logistics is rising, with 75 percent of shippers looking for environmentally friendly options when exporting to high income countries.
About World Bank (WB):
World Bank Group President – David Malpass
Headquarters – Washington, DC, USA
Establishment – 1944
