'Make In India' Also Requires Move In India Push

By siliconindia | Tuesday, 05 July 2016, 11:56 Hrs

Logistics forms the backbone of domestic and international trade in any economy and is a critical factor for competitiveness. Besides providing employment and movement of goods, an efficient logistical network enables increases in the speed of doing business.

A pertinent question is how does one measure the logistics performance of a country and compare it with that of other economies? A recent biannual report of the World Bank throws light on this. However, it must be noted that the performance on Logistics Performance Index (LPI) is a measure of performance on international supply chains and does not capture the reality within a domestic setting. For that, the domestic LPI scores are done in the same 'Connecting to Compete 2016' report.

The international LPI is based on an assessment of performance along six key indicators -- some on the input side and the others on the outcome side of the supply chain service delivery. These pertain to border control agencies, infrastructure and services quality on the input side. On the outcome side are competitively-priced international shipments, tracking and tracing and timeliness.

The data is based on feedback from logistics professionals on the ground.

In the present edition of the index, India's performance is by far the best since 2007, with the country improving to 35. In 2014, India was ranked 54 and so the jump this time around is a tremendous 19 ranks. With this, India is one of the best-performing economies relative to the average income level of its people.

So far the World Bank has put out five editions of the report since its inception in 2007 with the most recently being released in June 2016. There are three interesting insights from the report and associated data sets that merit attention.

First, it is interesting to note that the top 10 ranks on the index are occupied by the high-income economies and BRICS economies see huge dispersion in ranks and scores. Germany has emerged as the best country with an LPI score of 4.23 and Luxembourg is second with 4.22.

Source: IANS