LEADS 2021 Index Rankings: Gujarat ranked 1st among 21 states on the national logistics index 2021 chart for its ‘well-developed infrastructure and services driven by a responsive government’. The logistics index chart released on November 8, 2021, in the Logistics Ease Across Different States (LEADS) 2021 report by commerce and industry minister Piyush Goyal assessed the logistics efficiency of states in 2021. Gujarat was ranked number one in the LEADS 2019 index as well.
There was no ranking in 2020 due to the COVID-19 pandemic. On the top ten states in LEADS 2021 report, Gujarat is followed by Haryana, Punjab, Tamil Nadu, Maharashtra, Uttar Pradesh, Odisha, Karnataka, Andhra Pradesh, and Telangana. Uttar Pradesh jumped seven places to rank 6th in LEADS 2021 compared to its 13th position in LEADS 2018 report. In the North-Eastern States and Himalayan Union Territories, Jammu and Kashmir ranked at the top. Among other Union Territories, Delhi ranked at the top position.
Gujarat retains no. 1 rank in LEADS 2021 Index for third consecutive yearGujarat again ranked 1st in the LEADS 2021 Index among 21 states for its ‘proactive policies, well-developed infrastructure and services driven by a responsive government’. Gujarat retained its top position in the 3rd edition of the national logistics index similar to the previous two rankings in 2018 and 2019. Gujarat retains its top position for its logistics efficiency due to its integrated logistics policy and a logistics park policy, creation of institutional framework up till the city level, and creation of suitable port-related infrastructure. Gujarat has ranked on top over 20 other states in indicators such as quality and availability of infrastructure, ease of obtaining all approvals, the extent of facilitation, implementation of LEADS 2019 recommendations such as introducing faceless services in license renewals, widening of roads, expansion of warehousing, etc.
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Haryana, Punjab, Tamil Nadu, Maharashtra among Top 5 in LEADS 2021 Index
Haryana ranked 2nd in the LEADS 2021 Index due to its timeliness of cargo delivery during transportation, quality of warehousing, the efficiency of regulatory services, operating and regulatory environment. Haryana has gained four places to reach the No. 2 rank compared to its No.6 rank in the LEADS 2021 report.
Punjab ranked 3rd in the LEADS 2021 Index for its proactive policies including fiscal incentives under the Industrial and Business Development Policy, single-window clearance mechanism for regulatory approvals, development of warehousing zones, and grievance redressal mechanism. These policies have had a significant effect on the logistic ecosystem however the participating government agencies in the certification process do not have their testing facilities near Ludhiana results in sending samples to Delhi for testing and certification, clearance of imports and exports thereby increasing transaction time. Punjab moved one place down compared to its rank no 2 in the LEADS 2019 report.
Tamil Nadu ranked 4th in the LEADS 2021 Index for its proactive policies such as developing a State Integrated Logistics Plan and granting priority status to logistics. However, Tamil Nadu scored low for poor road infrastructure, road freight rates, and prices of terminal services.
Maharashtra ranked 5th in the LEADS 2021 Index as the state scored low due to poor road infrastructure, poor connectivity, congestion at ports, increased cost of transportation, road freight rates, and prices of terminal services.
India could bring down logistics cost down by 5 per cent
While launching the LEADS 2021 report, the Commerce and Industry Minister Piyush Goyal said the LEADS 2021 recommendations can aid India in bringing logistics costs down by 5 per cent in the next 5 years. Currently, the logistics cost are around 13 to 14 per cent of the GDP. Logistics are key to bringing ease and empowerment to businesses.
The LEADS 2021 report suggests that ‘rather than just absolute improvement in one state, improvement in logistics across all states will be a force multiplier for the entire logistics ecosystem,’ Goyal added.
India alone can expect a 40 per cent plus growth in exports and around 25 per cent growth in imports. The Commerce and Industry Ministry is working on resolving the empty containers problems with support from customs and railways.
What is LEADS Index? |
| The Logistics Ease Across Different States (LEADS) Index was launched in 2018 by the Commerce and Industry Ministry and Deloitte. The LEADS Index ranks states on the score of their logistics services and efficiency that are indicative of economic growth. The LEADS 2018 looked into import-export trade and assessed the efficiency of the logistics ecosystem in each state and UT. The LEADS 2019 looked into domestic and international trade. The LEADS 2021 assessed the domestic and EXIM logistics ecosystem of each state. The LEADS 2021 survey was conducted between May to August 2021 that included 21 indicators, 17 perception indicators, and 4 objective indicators. The ranking parameters of each state on the LEADS 2021 Index were based on the availability of logistics infrastructure, timeliness, the competitiveness of pricing, and services. The LEADS Index aims to push states into adopting policies that improve their logistics infrastructure. |
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