GS Paper - 3 (Economy)

Gujarat has been ranked the highest in the third edition of the Logistics Ease Across Different States (LEADS) index which is based on indicators such as infrastructure, services, timelines, traceability, competitiveness, security, operating environment and efficiency of regulatory processes. The report was released on 8 November 2021 by the commerce and industry minister Piyush Goyal.

According to the LEADS Index

  1. Gujarat has one again topped a national index of mobility of goods and efficiency of the logistics chain, closely followed by Haryana and Punjab.
  2. Tamil Nadu came fourth in 2021 against fifth position in 2019, while Maharashtra slipped a place to figure in the fifth ranking against fourth released by commerce and industry ministry.
  3. Uttar Pradesh leapfrogged seven notches up to rank six in 2021 compared to 13 in 2019, the highest among all states, driven by policy initiatives and higher infra spending in logistics.
  4. The report said that logistics costs can be brought down to 5% over the next five years from almost 14% now.
  5. Assam stood last on the chart among states while Jammu Kashmir was ranked first among North Eastern States and Himalayan Union Territories.
  6. The Western coastal cluster (Gujarat, Maharashtra, and Goa) with the availability of adequate logistics infrastructure leads the Cluster score table, according to the report.
  7. The LEADS survey 2021 was conducted from May-August 2021 amid the Covid pandemic.
  8. For each state/UT, ranking was formulated based on a revised methodology that has granular details such as multimodal transport, availability of mobile/internet connectivity, safety and security during transportation, consistency in delivery without damage.

Flashback

  1. The index is developed by the commerce and industry ministry along with Ernst & Young.
  2. Since its inception in 2018, each year LEADS report has followed a progressive methodology to provide a granular insight on the logistics performance at State/UTs level.
  3. LEADS 2021 has gone 2-step ahead in analysis of the domestic and EXIM logistics ecosystem of the state.
  4. The report is structured along the three dimensions which collectively influence logistics ease- Infrastructure, Services, and Operating and Regulatory Environment which are further categorised into 17 parameters.