India ranks 54th in trade logistics performance across globe: World Bank
Updated: Mar 24, 2014 02:30:29pm
New Delhi, Mar 24 (KNN) With a LPI (Logistics Performance Index) score of 3.08, India ranks 54th in trade logistics performance across the globe. The scoring is poor on all counts - customs, infrastructure, international shipments, logistics, quality and competence, tracking and tracing as well as timeliness.
This was revealed in a World Bank report - Connecting to compete 2014: Trade Logistics in the Global Economy, which shows the performance of countries across the world on the basis of LPI which is an indicator of on-the ground efficiency of trade supply chains or logistics performance, according to a press release from the PHD Chamber of Commerce and Industry.
The LPI index is a multidimensional assessment of logistics performance, rated on a scale from 1 (worst) to 5 (best). The six core components captured by the LPI survey are rated by respondents on a scale of 1–5, where 1 is very low or very difficult and 5 is very high or very easy. Ranks are given out of 160 countries.
The index ranks 160 countries depending on a number of aspects of global trade, including customs performance, infrastructure quality, and timeliness of shipments to reflect on the timeliness, cost and reliability of country’s execution of international trade.
According to the report, high-income countries dominate the top 10 rankings and also remained relatively unchanged since 2010. Germany is reported as the best performing country with an LPI score of 4.12 and followed by Netherlands, Belgium, United Kingdom, Singapore, Sweden, Norway, Luxembourg, United States, and Japan with an LPI score ranging from 4.05 to 3.91.
“With an overall rank of 54, India with the LPI score of 3.08 is ranked 3rd amongst lower-middle income countries. India is also reported as the over performing trade logistics performance amongst the non high-income economies,” the release said.
India is poor with regard to customs with a low score of 2.72 which is much worse than China (3.21), Malaysia (3.37), South Africa (3.11), Thailand (3.21) and Vietnam (2.81); followed by infrastructure with 2.88, against lowest among these countries.
The other over performing non high-income economies are Malaysia, South Africa, China, Thailand and Vietnam. However, India’s trade logistic performance has exhibited a fall as compared with 2010 when LPI score of 3.12 was recorded for the country.
The report has suggested strategies to improve logistics performance.
“In low-income countries, the biggest gains typically come from improvements to infrastructure and basic border management. This might mean reforming a customs agency, but, increasingly, it means improving efficiency in other agencies present at the border, including those responsible for sanitary and phyto-sanitary controls. Often, multiple approaches are required,” it said.
On the other hand, middle-income countries, by contrast, usually have fairly well-functioning infrastructure and border control. They generally see the biggest gains from improving logistics services, and particularly outsourcing specialized functions, such as transportation, freight-forwarding, and warehousing.
As far as high-income countries are concerned, there is a growing awareness of – and a demand for – “green logistics,” or logistics services that are environmentally friendly. In 2014, about 37 per cent of LPI survey respondents shipping to OECD countries recognized a demand for environmentally friendly logistics solutions, compared with just 10 per cent of those shipping to low-income destinations. (KNN/ES)
This was revealed in a World Bank report - Connecting to compete 2014: Trade Logistics in the Global Economy, which shows the performance of countries across the world on the basis of LPI which is an indicator of on-the ground efficiency of trade supply chains or logistics performance, according to a press release from the PHD Chamber of Commerce and Industry.
The LPI index is a multidimensional assessment of logistics performance, rated on a scale from 1 (worst) to 5 (best). The six core components captured by the LPI survey are rated by respondents on a scale of 1–5, where 1 is very low or very difficult and 5 is very high or very easy. Ranks are given out of 160 countries.
The index ranks 160 countries depending on a number of aspects of global trade, including customs performance, infrastructure quality, and timeliness of shipments to reflect on the timeliness, cost and reliability of country’s execution of international trade.
According to the report, high-income countries dominate the top 10 rankings and also remained relatively unchanged since 2010. Germany is reported as the best performing country with an LPI score of 4.12 and followed by Netherlands, Belgium, United Kingdom, Singapore, Sweden, Norway, Luxembourg, United States, and Japan with an LPI score ranging from 4.05 to 3.91.
“With an overall rank of 54, India with the LPI score of 3.08 is ranked 3rd amongst lower-middle income countries. India is also reported as the over performing trade logistics performance amongst the non high-income economies,” the release said.
India is poor with regard to customs with a low score of 2.72 which is much worse than China (3.21), Malaysia (3.37), South Africa (3.11), Thailand (3.21) and Vietnam (2.81); followed by infrastructure with 2.88, against lowest among these countries.
The other over performing non high-income economies are Malaysia, South Africa, China, Thailand and Vietnam. However, India’s trade logistic performance has exhibited a fall as compared with 2010 when LPI score of 3.12 was recorded for the country.
The report has suggested strategies to improve logistics performance.
“In low-income countries, the biggest gains typically come from improvements to infrastructure and basic border management. This might mean reforming a customs agency, but, increasingly, it means improving efficiency in other agencies present at the border, including those responsible for sanitary and phyto-sanitary controls. Often, multiple approaches are required,” it said.
On the other hand, middle-income countries, by contrast, usually have fairly well-functioning infrastructure and border control. They generally see the biggest gains from improving logistics services, and particularly outsourcing specialized functions, such as transportation, freight-forwarding, and warehousing.
As far as high-income countries are concerned, there is a growing awareness of – and a demand for – “green logistics,” or logistics services that are environmentally friendly. In 2014, about 37 per cent of LPI survey respondents shipping to OECD countries recognized a demand for environmentally friendly logistics solutions, compared with just 10 per cent of those shipping to low-income destinations. (KNN/ES)
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