LOGISTICS PERFORMANCE INDEX

• In September 2022, the Prime Minister launched the National Logistics Policy (NLP) which acts as a guiding document for States/UTs seeking to formulate logistics policy (19 States/UTs have notified their logistics policy).
• The policy is centred around the upgradation and digitisation of logistics infrastructure & services.
• Further with a focus on bringing efficiency in services (processes, digital systems, regulatory framework) and human resources, the policy puts marked emphasis on streamlining processes for seamless coordination and reduction in overall logistics cost, besides incentivizing employment generation and skilling of the workforce.
• NLP emphasizes the shift towards more energy-efficient modes of transportation and greener fuels to reduce the carbon footprint. 
• The policy also focuses on adopting the usage of multimodal transportation and complementing it by building multimodal logistics parks.
• Further, it emphasized the importance of targeted policy reforms to improve the time spent by cargo at ports, airports and multimodal facilities since most of the delays occur at these locations.

5.  Logistics Data Bank project

• The Government of India also invested in trade-related soft and hard infrastructure connecting port gateways on both coasts to the economic zones in the hinterland.
• Technology has been a critical component of this effort, with implementation under a public-private partnership of a supply chain visibility platform, which has contributed to remarkable reductions in delays.
• NICDC's Logistics Data Bank project applies radio frequency identification (RFID) tags to containers and offers consignees end-to-end tracking of their supply chain.
• Its implementation started in 2016 in the Western part of India and was scaled up to the Pan India level in 2020.
• With such initiatives of transparency, visibility and ease of doing business, there has been significant improvement in cross-border trade facilitation.
• Also, the Logistics Data Bank project promotes healthy competition amongst the ports as it provides information on performance benchmarking, congestion, dwell time, speed and transit time analysis.
• Over a period, it has also become a repository of data and information relating to the logistics industry and the same is shared with the stakeholders through monthly, quarterly and annual reports appreciates the Logistics Data Bank which reduces inefficiencies while connecting the hinterland to ports.

6.  LEADS Study

• At a sub-national level, the Department for Promotion of Industry and Internal Trade (DPIIT) has been conducting LEADS (Logistics Ease Across Different States) study since 2018 which helps to identify and resolve logistics inefficiencies and improve trade facilitation across supply chains.
• On a national level, India has notified Productivity Linked Incentive (PLI) Scheme for a boost to creating global champions in manufacturing, PM Mitra Textile Parks, Bulk Drug Parks, other areas of manufacturing and 43 Towns of Export Excellence meticulously focusing on Specific sectors for exports and provisions of related infrastructure.
• Resolving the logistics gaps/bottlenecks will help decrease the logistics cost and will lead to an increment in logistics efficiency which will contribute to ongoing reforms aimed at India becoming a global manufacturing/production hub in the coming years.
• Further other initiatives like Sagarmala which aims to improve connectivity to ports and reduce cargo dwell time and Bharatmala which focuses on improving road connectivity of major corridors have played a pivotal role in improving India's logistics efficiency.
• The LPI index is a perception-based survey conducted across select stakeholders dealing with respective countries.