LOGISTICS PERFORMANCE INDEX(LPI)

Logistics Performance Index (LPI)

The Logistics Performance Index (LPI) is created by the World Bank to help countries identify the challenges and opportunities they face in their performance on trade logistics and chart the improvement measures. The Index is based on a survey with freight forwarders and express carriers globally and is computed as the weighted average of the country scores on the six key dimensions:

  1. Efficiency of the clearance process (i.e., speed, simplicity and predictability of formalities) by border control agencies, including customs
  2. Quality of trade and transport related infrastructure (e.g., ports, railroads, roads, information technology)
  3. Ease of arranging competitively priced shipments
  4. Competence and quality of logistics services (e.g., transport operators, customs brokers)
  5. Ability to track and trace consignments
  6. Timeliness of shipments in reaching destinations within the scheduled or expected delivery time.

In 2016, India was ranked 35th in the LPI, moving up from 54th position in 2014, riding on massive capacity investments made since 2014, in almost all sectors of transport (by way of mega projects like DFCs/UDAN/Bharatmala/Sagarmala etc.) major policy reforms like GST and measures in support of EoDB.

Building on recent developments in the logistics sector, the focus is on improving India’s rank to top 25 performing countries on the LPI to enhance competitiveness in the global supply chain. This can be made possible with help of key enablers like increased predictability, promoting multimodal transportation with enhanced integration of various service providers in the supply chain and adoption of technology/digital solutions for capturing real-time data for better decision-making.

Suggestions in this direction from the visitor are most welcome.