India climbs 6 places on World Bank’s Logistic Performance Index
NEW DELHI : India’s ranking in the World Bank’s Logistic Performance Index 2023 has improved by six places, thanks to significant investments in soft and hard infrastructure, as well as technology, which have led to an improvement in the country’s port performance. The World Bank report has ranked India at 38, up from 44 in 2018, among 139 countries.
According to the World Bank report, the Indian government has made investments in both soft and hard infrastructure related to trade, which has helped connect port gateways on both coasts to the economic poles in the hinterland. The report also highlights that end-to-end supply chain digitalisation is allowing countries, particularly emerging economies like India, to shorten port delays by up to 70% compared to those in developed countries.
In terms of international shipments, India’s ranking improved significantly, moving up from 44 in 2018 to 22 in 2023. The country also climbed four places to rank 48 in logistics competence and equality. In terms of timelines, India saw a significant improvement, moving up 17 places in the rankings. Additionally, India improved three places in tracking and tracing, now ranking at 38.
The report suggests that the biggest delays occur at seaports, airports, and multimodal facilities, despite most of the time being spent in shipping. Policies targeting these facilities can help improve reliability, according to Christina Wiederer, Senior Economist at the World Bank group’s macroeconomics, trade & investment global practice and the report’s co-author.
The demand for green logistics is also rising, with 75% of shippers looking for environmentally friendly options when exporting to high-income countries. This presents an opportunity for India to further improve its logistics performance by investing in green logistics.
The improvement in India’s ranking in the Logistics Performance Index 2023 is a positive sign for the country’s logistics sector, which plays a crucial role in its economic growth. The government’s continued focus on improving the country’s logistics infrastructure and policies can further enhance India’s performance in the index and boost its trade competitiveness.