World Bank’s Logistic Performance Index (LPI) 2023

• 24 Apr 2023

Recently, the World Bank released the Logistic Performance Index (LPI) 2023 which measures the ease of establishing reliable supply chain connections and the structural factors that make it possible, such as the quality of logistics services, trade and transport-related infrastructure, and border controls.

• India climbed six places on the Logistic Performance Index (LPI), ranking 38th out of 139 countries in 2023.
• India's rank on LPI has significantly improved from 54th in 2014 and 44th in 2018.
• Singapore topped the index.
• India's improvement is attributed to its investments in both soft and hard infrastructure and technology.
• India moved up five places in infrastructure score, 22nd spot for international shipments, and four places up to 48th in logistics competence and equality.
• Demand for green logistics is rising, with 75% of shippers looking for environment-friendly options when exporting to high-income countries.
• The PM Gati Shakti initiative and National Logistics Policy (NLP) are major initiatives contributing to India's improvement.
• India's implementation of a supply chain visibility platform under a public-private partnership resulted in remarkable reductions of delays.
• The report suggests that end-to-end supply chain digitalization, especially in emerging economies, is allowing countries to shorten port delays by up to 70% compared to those in developed countries.

The Logistics Performance Index (LPI) is a benchmarking tool created by the World Bank to help countries identify the challenges and opportunities they face in their performance on trade logistics. The LPI ranks countries on six dimensions of trade, including customs performance, infrastructure quality, timeliness of shipments, logistics competence, tracking and tracing, and the frequency of shipments reaching their destination within scheduled or expected delivery times.