Commerce and Industry Minister Piyush Goyal expressed optimism on Saturday, asserting that reducing India’s logistics costs to 5-6% is achievable. This statement accompanied the release of the Logistics Ease Across Different States (LEADS) 2023 report, where Andhra Pradesh, Karnataka, Tamil Nadu, Chandigarh, and Gujarat were identified as “achievers” in the logistics index.
The LEADS 2023 ranks states based on their logistics ecosystem, shedding light on key challenges. It serves as a crucial indicator for evaluating the efficiency of logistical services, crucial for fostering exports and economic growth.
This year’s report, encompassing 13 states and Union Territories, witnessed Himachal Pradesh and Uttarakhand transitioning into the categories of “aspirers” and “fast movers,” respectively, while Sikkim and Tripura elevated to the “achievers” category from being “fast movers” in 2022.
The states and UTs joining the “achievers” category include Delhi, Assam, Haryana, Punjab, Telangana, and Uttar Pradesh.
Minister Goyal emphasized the pivotal role of the logistics sector in propelling India’s economy to approximately $35 trillion by 2047. Quoting a report from the National Council of Applied Economic Research (NCAER), he highlighted that the country’s logistics cost currently stands at 7.8-8.9% of the gross domestic product (GDP).
Looking ahead, Goyal suggested industry focus on skilled manpower, increased state participation, adoption of new technologies like AI, blockchain, and data analytics, along with measures to reduce the carbon footprint. He anticipates that these efforts will further catalyze the growth of India’s logistics sector.
States such as Goa, Odisha, West Bengal, Bihar, Chhattisgarh, Himachal Pradesh, Jharkhand, Manipur, Meghalaya, Mizoram, Daman and Diu, Dadra and Nagar Haveli, Jammu and Kashmir, and Ladakh fall into the “aspirers” category. Kerala, Maharashtra, Madhya Pradesh, Rajasthan, Uttarakhand, Arunachal Pradesh, Nagaland, Andaman and Nicobar, Lakshadweep, and Puducherry are categorized as “fast movers.”