Commerce and industry minister Piyush Goyal on Saturday said that reducing India’s logistics costs to 5-6% is doable while releasing a report that showed Andhra Pradesh, Karnataka, Tamil Nadu, Chandigarh, and Gujarat among the 13 states and Union Territories that have l been categorised as “achievers” in the logistics index 2023.
The Logistics Ease Across Different States (LEADS) 2023 ranks states on the basis of their logistics ecosystem and highlights the key logistics related challenges. The index is an indicator of the efficiency of logistical services necessary for promoting exports and economic growth.
From 15 states and UTs, this year the number has reduced to 13 as Himachal Pradesh and Uttarakhand have slipped into “aspirers” and “fast movers” categories, respectively.
As per the report, steps taken by Sikkim and Tripura have helped them move up the ladder to the “achievers” category from “fast movers” in 2022.
The other states and UTs in the “achievers” category are Delhi, Assam, Haryana, Punjab, Telangana, and Uttar Pradesh.
Goyal said the logistics sector will play a key role in taking the country’s economy to about $35 trillion by 2047. Citing a report of economic think tank NCAER, he said the country’s logistics cost is estimated 7.8-8.9% of the gross domestic product.
“Going forward, the aim to bring it down to the 5-6% level is certainly doable,” he said, and suggested the industry to focus on skilled manpower, enhanced participation of states, use of new technologies like AI, blockchain and data analytics, and steps to reduce carbon footprint will further help in the growth of the country’s logistics sector.
Those in the “aspirers” category include Goa, Odisha, West Bengal, Bihar, Chhattisgarh, Himachal Pradesh, Jharkhand, Manipur, Meghalaya, Mizoram, Daman and Diu, Dadra and Nagar Haveli, Jammu and Kashmir, and Ladakh.
Kerala, Maharashtra, Madhya Pradesh, Rajasthan, Uttarakhand, Arunachal Pradesh, Nagaland, Andaman and Nicobar, Lakshadweep, and Puducherry have been categorised as “fast movers”, according to the report.
