India jumps 19 spots up in World bank’s LPI ranking

The Dollar Business Bureau

Amid efforts by the government for easing trade, India jumped 19 spots up in the latest ranking of World Bank’s biennial report on Logistics Performance Index. Earlier in 2014, India stood at the 54^th position.

Germany and Luxembourg topped the list with first and second positions respectively.

In the latest report, India left behind the moderately advanced economies like New Zealand, Thailand, Iceland, Saudi Arabia, Indonesia, Latvia, Mexico and Portugal.

World Bank’s President, Jim Yong Kim, during his recent visit to India, congratulated Prime Minister Narendra Modi for the latest achievement. Kim further affirmed that the World Bank will continue to back India in various activities and projects.

Improvised logistics will not only boost initiatives like Make in India, by making India capable of becoming part of global supply chain, but will also help in boosting trade activities, added the report.

The global Logistics Performance Index does not give a clarity on the ease of moving goods to the vicinity of a country. The global LPI rankings are based on two sources of information. First, a global survey of logistics operators on the ground like express carriers and freight forwarders, providing feedback of the countries they traded with. And secondly the quantitative data on supply chain and import  and export procedures performance.

To address the movement of goods, World Bank came up with another report on domestic LPI. The analyses of the performance of a country is based on four elements: services, infrastructure, supply chain reliability and border formalities.

India has drastically improved on the aspect of customs and border procedures. It has climbed to 38^th position in latest ranking from 65^th spot in 2014.