Govt to declare Logistics Performance Index for states, UTs by December

The commerce ministry, which is working on a Logistics Performance Index (LPI) for states and union territories, would announce the rankings by December or early next year, an official said.

The commerce ministry official, who is working on the project, said they have engaged Deloitte to work out the indicators for the index.

Under the index, states and union territories will be ranked as per their trade related facilities. The move would help involve states in promoting the country's exports.

"We have given six months time to Deloitte for their report. So the first such index will be out by year end or early next year," the official added.

The ministry is also taking expertise of World Bank for this exercise.

The parameters on which the performance would be compared include GST (Goods and Service Tax) rollout, removal of check posts and time taken in tax refund.

India has jumped 19 places in the last World Bank ranking in the global logistics performance. It stood 35th among 160 countries.

The LPI ranking would encourage states to work and improve upon their logistics infrastructure as inadequate infrastructure impacts trade and investments.

The ministry had decided to introduce this index during the second meeting of the Council for Trade Development and Promotion in January.

Exporters body FIEO Director General Ajay Sahai said high logistics cost in India impacts trade in terms of competitiveness.

Indian exporters have time and again demanded cuts in railway freight rates to enhance price competitiveness in global markets.

A commerce ministry strategy paper released in 2010 had emphasised the need to invest billions in improving infrastructure to boost exports. It had asked the government to invest in modernising roads, ports, railways, airports, power and customs stations.

In India, the container transport mainly happens through roads due to various reasons like high railway freight rates, unreliable scheduling of freight trains and poor last-mile connectivity.