Logistics Performance Index(LPI) Rankings

Context:  India wants the World Bank to consider several measures taken by the government to improve logistics while determining the logistics ranking of countries. 

About Logistics Performance Index:

• The LPI is an interactive benchmarking tool developed by the World Bank 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. 
• Parameters: At present, the World Bank considers six parameters that include customs, infrastructure, international shipments, logistics competence, tracking and tracing, and timelines.
• India’s Ranking: It has climbed six places on the World Bank’s Logistic Performance Index (LPI) 2023, now ranking 38th in the 139 countries index.
  • The national logistics policy has fixed a target to take up India’s ranking in top 25 by 2030.

India’s Desired LPI Measurement Inclusions: 

• PM GatiShakti Initiative: The PM GatiShakti initiative, a significant logistics and infrastructure development project in India, should be considered in the LPI assessment.
• Unified Logistics Interface Platform (ULIP): The ULIP, a digital gateway that enables access to logistics-related datasets, should be acknowledged in the assessment for its role in facilitating smoother logistics operations.
• Logistics Data Bank: India suggests incorporating the Logistics Data Bank.
  • It was launched in 2016 to enhance the efficiency of India’s logistics sector through the use of Information Technology (IT).x
• Objective-Based Methodology: India advocates for a shift to an objective-based methodology for LPI scoring.

News Source: The Economic Times

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