As Gujarat topped the index of Logistics Ease Across Different States (LEADS) 2021, prepared by the Union Ministry of Commerce and Industry, Kerala secured a poor 14 th position. The index is a part of The LEADS 2021 report released by Union Minister of Commerce and Industry, Piyush Goyal at New Delhi on November 8,2021.
While Gujarat retained the top position it secured in LEADS 2019 index, Kerala slipped by three ranks from the 11 th position in the LEADS Index 2019. But, it also needs to be said that certain parameters for preparing the index have been changed this time compared to 2019, and that also needs to be factored in while considering Kerala’s dismal performance.
The LEADS ranking which was launched in 2018 throws light into the logistics eco-systems existing in different states and logistics related challenges faced by the stakeholders. The report also has suggestive recommendations. The index has not been published last year because of the Covid 19 Pandemic.
Meanwhile all the neighbouring states of Kerala registered superior performances in the index compared to Kerala. While Tamil Nadu got a top fourth rank bettering its position from the fifth rank it got last time, Karnataka secured eighth position, Andhra Pradesh is placed ninth, and Telangana 10 th in the index.
Uttar Pradesh which was placed 13 th in the LEADS 2019 edition registered an outstanding performance by leapfrogging seven positions to reach the sixth place in the index. According to Piyush Goyal UP’s performance was driven by policy initiatives, and higher infra spending in logistics. Haryana and Punjab are placed second and third in the index while Maharashtra secured the fifth position.
UTs and NE & Himalayan States
Within the North Eastern States and Himalayan Region, Jammu and Kashmir is the top ranker followed by Sikkim and Meghalaya. Delhi stands at the top rank among Other UTs
The first version of the report, LEADS 2018, focused on export-import (EXIM) trade and assessed the efficiency of the logistics ecosystem in each State and UT. The second edition of the study – LEADS 2019, covered both international and domestic trade.
The third edition which is LEADS 2021 exercise has gone one-step ahead in analysing domestic and EXIM logistics ecosystem of the state. According to Mr Goyal, two improvements have been done in the overall assessment framework this time. Firstly, objective parameters have been used along with the perception-based indicators for index formulation.
Methodology
Mr Goyal said that since its inception in 2018, each year LEADS report has followed a progressive methodology to provide a granular insight on the logistics performance at State/UTs level. “LEADS 2021 has gone 2-step ahead in the analysis of domestic and EXIM logistics ecosystem of the state” he added.
A total of 21 perception and objective variables have been statistically analysed to prepare a composite index basis upon which the states have been ranked. The perception survey was administered to the four different categories of logistics stakeholders, viz. traders/ shippers, transport service providers, terminal operators, and logistics service providers.
The States’ objective survey collected binary responses in the context of the areas related to policy, institutional framework, current enforcement mechanism, warehousing approvals and processes, smart enforcement, city logistics, drivers’ empowerment, etc. to understand the initiatives taken by the different state governments towards improving the logistics environment in their respective States.
The secondary dataset was compiled with the assistance of the central government ministries, department and associated agencies. The LEADS survey 2021 was conducted over the period from May to August 2021. The whole exercise garnered 3771 responses from 1,405 respondents across the country.