Current Affairs


India improves its ranking by 19 places on World Bank Logistics Performance Index [Infrastructure]

  • India has improved its ranking in the World Bank Group’s bi-annual “Logistics Performance Index 2016”, jumping from 54th in 2014 to 35th in 2016.
  • In the latest ranking India has gone past countries like New Zealand, Thailand, Saudi Arabia, Iceland, Latvia and Indonesia who were ahead of it in the index.
  • India’s jump of 19 positions in the ranking demonstrates the commitment of various Ministries and agencies of Government of India to make it easy to do business in India.
  • The World Bank studies the policy regulation as well as supply chain performance outcomes across six sub-indices of the Logistics Performance Index and ranks countries based on their performance in all the indices.
  • It is a perception survey based on the feedback of operators on the ground as they are the people who can best assess the aspects of logistics performance.
  • Various aspects of international trade relating to streamlining border clearance procedures, ensuring access to physical infrastructure and quality of logistics services are assessed.
  • India improved the most on “efficiency of customs and border management clearance”, jumping from 65 in 2014 to 38 in 2016.
  • Recent reforms at Customs, such as the introduction of a Single Window Interface for Trade (SWIFT) and electronic messaging system, filing of import and export declarations and manifests online with digital signature, extension of Customs’ risk management system to other regulatory agencies to ensure risk-based inspection, reduction of documents required for export and import, extension of 24 × 7 customs clearance facilities to 19 seaports and 17 air cargo complexes, removal of limit on the number of consignments released under direct delivery, etc., have resulted in improvement in the indicator.
  • India also improved significantly in the following sub-indices:
    • The ability to track and trace consignments, improving from 57 to 33;
    • The quality of trade and transport infrastructure, improving from 58 to 36; and
    • The competence and quality of logistics services, improving from 52 to 32.
    • The ease of arranging competitively priced shipments, improved by 5 places
    • The frequency with which shipments reach consignees within scheduled or expected delivery times, improved by 9 places.
  • The World Bank Group’s bi-annual report ‘Connecting to Compete 2016: Trade Logistics in the Global Economy’, captures critical information about the complexity of international trade.
  • Countries with inefficient logistics face high costs – both in terms of time and money – in international trade and global supply chains.
  • India’s improvement in Logistics Performance Index is ample evidence that our competitiveness in manufacturing and services is also improving which will provide the required boost to the Make in India programme.