Gujarat topped the logistics index chart, a measure of the effectiveness of logistical services required to promote exports and economic growth, as per a study released by the commerce ministry on Monday. The state has remained at the top of the rankings for the third year in a row.
Haryana, Punjab, Tamil Nadu and Maharashtra came in second, third and fourth, respectively. According to the research, states were assessed based on their logistics ecosystem, which included outlining the primary logistics-related difficulties encountered by stakeholders as well as suggesting remedies. Piyush Goyal, the Union Minister of Commerce, launched the third LEADS (Logistics Ease Across Different States) report for 2021. The LEAD also intends to focus more on increasing logistics performance across states, which is critical for enhancing commerce and lowering transaction costs in the country.
In the northeastern states and Himalayan Union territories category, Jammu and Kashmir came out on top, while Delhi came out on top in the rest of the Union territories category.
Uttar Pradesh, Odisha, Karnataka, Andhra Pradesh and Telangana were also rated behind Maharashtra in that order. West Bengal, Rajasthan, Madhya Pradesh, Goa, Bihar, Himachal Pradesh, and Assam, respectively, were rated 15th, 16th, 17th, 18th, 19th, 20th and 21st. There are 21 indicators that make up the whole index. The study, which took place from May to August this year, had 3,771 responses from 1,405 people across the country.
Goyal stated that the report’s recommendations can reduce logistics costs by 5% in the next five years. According to estimates, the present cost is around 13-14 percent of GDP. ‘Rather than just absolute improvement in one state, improvement of logistics across all states will be a force multiplier for the entire logistics ecosystem. Efficient logistics was pivotal to bring ease and empowerment to businesses as well as citizens’, Goyal said.