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Logistics is a system that organizes and operates efficiently and effectively from the point of departure to the point where they are stored and used. It is based on a participatory study conducted by Deloitte for the Ministry of Commerce and Industry and LEADS Index 2021 is the third edition.
It is a key parameter in determining trade competition in government or country. The goal of Logistics Ease Across Different States is to meet customer needs in a timely and cost-effective manner.
Parameters of LEADS
There are eight parameters upon which LEADS Index 2021 is based:
- Services
- Time
- Track and follow
- Infrastructure
- Property security
- Price competition
- Operating environment
- Regulatory process
About the Index
The Logistic Ease Across Different States (LEADS) Index was launched in 2018 and was developed by the Department of Ministry of Commerce and Industry. The index assesses regions in terms of planning support to encourage commodity trading.
The standard is set based on parameters such as price competition, and availability of infrastructure and services. It aims to encourage governments to provide policies to improve their planning-related infrastructure.
Best Performing States
In terms of logistics and efficiency of the supply chain Gujarat, Haryana and Punjab have emerged as the best performing states. The LEADS Index 2021 provides the standard for provinces based on logistics infrastructure.
Gujarat
Gujarat retains its high position in terms of efficiency due to its integrated transport policy and transport park policy, the construction of an institutional framework up to the city level, and the creation of appropriate port-related infrastructure.
Gujarat is ranked in the top 21 by other provincial indicators such as quality and availability of infrastructure, easy access to all accreditation, standardization, implementation of LEADS 2019 recommendations such as delivering flawless licensing services, road extensions, and road widening, warehouse, operating and regulatory environment, etc.
Gujarat is ranked first in the LEADS 2019 index as well.
Haryana
Haryana is ranked 2nd in the LEADS 2021 Index due to its delivery time, shipping quality, efficiency of administrative services, and operating and regulatory environment. Haryana has won four places to reach number 2 compared to number 6 in the LEADS 2021 report.
Punjab
Punjab is ranked 3rd in the LEADS 2021 Index for its practical policies that include financial benefits under the Industrial and Business Development Policy, one-way rule of regulation, warehouse development, operating and regulatory environment, and grievance redressal mechanisms.
These policies have had a significant impact on the ecosystem and yet the state institutions involved in the certification process do not have testing facilities near Ludhiana resulting in sending samples to Delhi for testing and certification, import and export approvals thereby extending the purchase time. Punjab dropped one place compared to level two in the LEADS 2019 report.
Rankings of LEADS Index 2021:
- Gujarat is ranked first and best-performing state among the 21 regions in the 2021 national transport index chart for ‘well-developed infrastructure and responsive government services.’
- The transport index released on November 8, 2021, in the Logistics Ease Across Different States (LEADS) 2021 report by the Minister of Trade and Industry Piyush Goyal assessed the effectiveness of the provinces in 2021.
- Uttar Pradesh skipped seven places to be ranked 6th in LEADS 2021 compared to its 13th position in the 2018 LEADS report.
- In the North East and Himalayan Union Territories, Jammu and Kashmir are ranked high, with the best operating and regulatory environment.
- Among other union areas, Delhi is ranked high.
India May Reduce Commodity Costs by 5%
Presenting the Logistics Ease Across Different States Index 2021 report, Trade and Industry Minister Piyush Goyal said LEADS 2021 recommendations could help India reduce Logistics costs by 5% over the next 5 years. Currently, asset costs are between 13 and 14 percent of GDP. Logistics is important for easy delivery and business growth.
The LEADS 2021 report suggests that ‘rather than being completely optimistic in a single situation, performance improvements in all provinces will be a dynamic force in the entire spatial system,’ adds Goyal.
India alone can expect 40 percent growth and export growth and 25 percent growth in exports. The Department of Trade and Industry is working to solve the problem of empty boxes with support from Customs and trains.
Conclusion
According to the Logistics Ease Across Different States (LEADS) Index 2021, the top 3 slots of best performing States are Gujarat, Haryana, and Punjab respectively. Tamil Nadu is in the 4th slot among the best performing States. Maharashtra at the 5th slot among the best performing States. Uttar Pradesh, Uttarakhand, and Jharkhand have seen significant progress compared to the 2019 LEADS rate. These provinces have emerged as top developers.
