India’s Impressive Leap in World Bank’s Logistics Performance Index 2023

India is making strides in enhancing its logistics efficiency, as evidenced by its improved ranking in the World Bank’s Logistics Performance Index (LPI) 2023. With the government’s dedication to infrastructure reforms and technology-driven initiatives, India is well on its way to becoming a global manufacturing and production hub. This article discussed about the key factors contributing to India’s remarkable progress in LPI rankings, highlighting the nation’s policy efforts, technological advancements and ongoing initiatives.

India's Impressive Leap in World Bank's Logistics Performance Index 2023

India Soars in World Bank’s LPI 2023

India’s ranking in the World Bank’s LPI has improved dramatically, jumping six places to rank 38 out of 139 countries. This achievement is largely due to the Indian government’s commitment to enhancing logistics efficiency through various initiatives since 2015.

India’s Remarkable Improvement in LPI Indicators

India has demonstrated significant progress on four out of the six LPI indicators, reflecting the country’s global positioning and the government’s focus on logistics infrastructure reforms. Notable initiatives include the launch of the PM GatiShakti National Master Plan (PMGS-NMP) in October 2021, which focuses on a coordinated approach to infrastructure planning and development. PMGS-NMP emphasizes breaking silos among departments and ministries, utilizing a GIS-based tool to integrate existing and proposed infrastructure initiatives for seamless movement of goods and people.

National Logistics Policy: A Game-Changer

In September 2022, PM Modi has unveiled the National Logistics Policy (NLP), which serves as a guiding document for the States and Union Territories (UTs) seeking to formulate logistics policy. Centered around upgrading and digitizing logistics infrastructure and services, the NLP aims to streamline processes, reduce logistics costs, incentivize employment and emphasize workforce skill development. Additionally, the policy prioritizes the shift towards energy-efficient transportation and greener fuels, as well as the use of multimodal transportation and logistics parks.

Leveraging Technology for Trade and Infrastructure

Government has also invested in trade-related infrastructure and technology, such as implementing a supply chain visibility platform under a public-private partnership. NICDC’s Logistics Data Bank project, which utilizes RFID tags for container tracking, has significantly improved cross-border trade facilitation, offering transparency, visibility and ease of doing business. This initiative has been recognized in the LPI report for its role in reducing inefficiencies and connecting the hinterland to ports.

Encouraging Competition and Identifying Inefficiencies

The Logistics Data Bank project also fosters competition among ports by providing performance benchmarking, congestion, dwell time, speed and transit time analysis. It serves as a repository of data and information for decision-making and logistics efficiency improvement. On a sub-national level, the Department for Promotion of Industry and Internal Trade (DPIIT) has conducted the LEADS study since 2018 to identify and resolve logistics inefficiencies and enhance trade facilitation.

Ongoing Efforts to Boost India’s Logistics Efficiency

India has implemented a range of initiatives, such as the Sagarmala program and Bharatmala project, to improve port connectivity and reduce cargo dwell time. These efforts have played a crucial role in the country’s progress in the LPI rankings. As India continues to address logistics gaps and bottlenecks, the nation moves closer to becoming a global manufacturing and production hub in the coming years.


India’s significant improvement in the World Bank’s LPI rankings is a testament to the country’s determination to revolutionize its logistics landscape. Through a combination of visionary policies, technological integration and robust infrastructure development, India is setting the stage for a promising future in the global logistics arena. As India continues to prioritize logistics efficiency, the nation is poised to emerge as a leading player in the world of manufacturing and production.


Leave a Reply