Logistics Current Affairs

Department of Commerce and CII ink MoU for development of Logistics sector

The Department of Commerce has signed MoU with Confederation of Indian Industry (CII) for setting-up institutional mechanism for the development of Logistics sector in the country.

Both will work together for taking logistics sector to global levels both in terms of efficiency and cost. They will follow Commerce Ministry’s roadmap for modernizing logistics sector and bring it at par with the global best.

Road map

The road map aims to foster focused engagement with the industry and collaborate with the concerned agencies including state Government’s and other related agencies. It will also undertake mutually agreed focused studies on logistics and promote Government’s policies on logistics

Background

The Union Government has decided to reduce Logistics cost in country from the present 14% of GDP to less than 10% by 2022. For this purpose, a concerted effort in collaboration with Central Ministries as well as State Governments has been initiated for simplifying the regulatory processes in both domestic and EXIM (export-import) logistics. Government also has granted infrastructure status to number of logistics activities, which will enable them to avail cheaper and long term commercial loans.

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Gujarat tops in Logistics Ease Across Different States index

Gujarat has topped among 22 states in the Logistics Ease Across Different States (LEADS) index released by Union Ministry of Commerce & Industry.

It was released by Union Minister of Commerce & Industry Suresh Prabhu after the third meeting of the Council for Trade Development and Promotion in New Delhi.

Rankings in LEADS index

Punjab has acquired second position followed by Andhra Pradesh, Karnataka and Maharashtra.  Among the Union Territories, Daman & Diu occupied top slot followed by NCT Delhi and Chandigarh. As regards the hilly states, Tripura was on top followed by Mizoram and Meghalaya.

LEADS index

The LEADs index is a composite indicator to assess international trade logistics across States/UTs based on stakeholders’ survey conducted by Deloitte for Ministry of Commerce and Industry. It is calculated based on eight parameters such as infrastructure, services, timeliness, track and trace, competitiveness of pricing, safety of cargo, operating environment and regulatory process.

LEADS is loosely based on World Bank’s biannual Logistics Performance Index (LPI) on which India was ranked 35 among 160 countries in 2016, up from 54 in 2014. It aims to serve as an indicator of efficiency of logistical services necessary for promoting exports in particular and economic growth in general.

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