Copyright infringement not intended
Picture Courtesy: indiashippingnews.com
Context: The Logistics Ease Across Different States (LEADS) perception survey conducted by the Union Ministry of Commerce and Industry sheds light on the logistics challenges faced by Indian states and their performance in this crucial aspect.
Key points from the Survey
- Improvement in Scores: The survey indicates that landlocked states have shown improvement in average scores across various parameters, including the quality of roads, terminals, cost of logistics, and availability of skilled workforce, compared to 2019.
- Concentration of Exports: Despite improvements, only five states—Gujarat, Tamil Nadu, Karnataka, Maharashtra, and Telangana—contribute to 70% of the country's exports. This concentration has led to a widening gap in income and job generation between landlocked and coastal states.
- Challenges in Certain States: Bihar, Himachal Pradesh, Jharkhand, and Chhattisgarh received low perception scores on road and terminal quality. Jharkhand, in particular, scored below average across all indicators, including infrastructure, services, and regulatory categories.
- Contribution to GDP: The North Eastern states contribute 2.8% to India's GDP, requiring significant logistics-related improvements. The survey notes a marked improvement in all parameters compared to the 2019 survey.
- State-Specific Challenges: Manipur faces lower-than-average user satisfaction levels across various indicators. Assam performed better than average, but Meghalaya's user performance assessment was below the North-East Group average.
- Export Contribution: Indian coastal states contribute significantly to exports, with Andhra Pradesh, Goa, Gujarat, Karnataka, Kerala, Maharashtra, Odisha, Tamil Nadu, and West Bengal accounting for 75% of total exports.
- Performance Lags: The survey reveals that Goa, Odisha, and West Bengal continue to perform below the average among coastal states. Despite improvement in Odisha's overall logistics perception since 2019, the indicator averages remain below the Coastal Group average.
- Competitiveness Concerns: Improved logistics competitiveness is crucial for India to compete with countries like Vietnam and Indonesia. Despite increased infrastructure spending, deep-seated logistical issues continue to affect Indian manufacturing and export efforts.
- Regional Disparities: The concentration of exports in a few states and disparities in logistics performance among landlocked and coastal states highlight the need for a more balanced and inclusive approach to logistics development.
- The survey underscores the significance of logistics efficiency in bolstering India's competitiveness, particularly as it aims to position itself as a viable alternative to manufacturing hubs like China. Addressing these challenges, especially in infrastructure and regional disparities, will be pivotal for the country's economic growth and export performance.
Q. How does the recent Logistics Ease Across Different States (LEADS) perception survey shed light on the challenges and performance variations within the logistics sector in India, and what implications does this have for the country's manufacturing competitiveness and export growth?