Home / News / India /  ‘Govt plans 500 bps cut in logistics costs’
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Trade minister Piyush Goyal on Monday said the government aims to bring down logistics costs by 5 percentage points from the existing 14% over the next five years.

Releasing the report of Logistics Ease Across Different States (LEADS) Report 2021, Goyal said PM Gati Shakti Masterplan would revolutionise the next generation of multimodal infrastructure development in the country. “With competitive and cooperative federalism, LEADS is creating an ecosystem for excellence by bringing in a healthy competitive spirit where everyone is persuaded to improve. Rather than just absolute improvement in one state, improvement of logistics across all states, will be a force multiplier for the entire logistics ecosystem," he added.

Gujarat, Haryana and Punjab have emerged as the top three performers in the LEADS 2021 index. The report ranks the states on the basis of their logistics ecosystem, highlights the key logistics-related challenges faced by the stakeholders and includes suggestive recommendations.

Goyal said that 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. "LEADS 2021 has gone 2-step ahead in analysis of domestic and EXIM (export and import) logistics ecosystem of the state," he added.

The minister said that states have an indispensable role in improving the logistics ecosystem of India. He outlined a number of suggestions for states including framing of state logistics policy and logistics Masterplan, use single-window clearance system for logistics, establishment of grievance redressal mechanism and enabling of skilling in logistics through state skilling infrastructure.

Goyal said LEADS report would be a handy and practical guide to identify strengths, opportunities and improve the logistics performance of states.

The Ministry of Commerce and Industry (MoCI) had launched a study, “Logistics Ease Across Different States (LEADS)" in 2018 with the main objective of ranking states and UTs on the efficiency of their logistics ecosystem. The first version of the report, LEADS 2018, focused on export-import trade and assessed the efficiency of the logistics ecosystem in each State and UT. The second edition of the study – LEADS 2019, covered both international and domestic trade. The third edition of LEADS 2021 exercise has gone one-step ahead by using objective parameters along with the perception-based indicators for index formulation.

The objective parameters in the LEADS 2021 Index have been introduced by way of an objective survey instrument administered to the states/UTs and by the inclusion of secondary datasets on logistics across the state/UT level. The statistical methodology to build the index has been updated to get more robust results, given change in the overall framework.

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