India makes case before WB for logistics ranking push
World Bank incorporating more
data to make LPI comprehensive
DHRUVAKSH SAHA
New Delhi, 20 March
With the World Bank looking to
incorporate more data into its
decision-making process for the
International Logistics
Performance Index (LPI), a key
indicator of ease of trade, India has
made its case for a better score to
the multilateral financier citing
several reforms, Business Standard
has learnt.
India is currently ranked 38th
(up from 44th earlier) in the LPI
2023, and it shares this rank with
Portugal, Saudi Arabia, Turkey,
and Lithuania. The Centre has
previously expressed its
dissatisfaction with the index’s
methodology. Singapore topped
the index in 2023.
“The World Bank is now
utilising much more granular data
and engaging in big data-oriented
conversations with countries so
that the upcoming index is more
grounded in reality than
subjectivity and perception,
which formed a major part
of the methodology,” a
government official aware of the
developments said.
A team of officials from several
logistics-linked and infrastructure
ministries, such as commerce,
railways, ports and shipping, road
transport and highways, among
others, is currently in Washington
DC. It has apprised the World Bank
of infrastructure works in the
country and initiatives such as PM
GatiShakti National Master Plan
(NMP), Logistics Data Bank, and
facilitating datasets such as e-way
bills and more.
Till 2023, the index was made
through a survey, which was
essentially sentiment-based
scoring by trade stakeholders,
along with datasets to be provided
by participating countries on six
key metrics -- customs,
infrastructure, internal shipment,
logistics competence, tracking
and tracing, and timeliness. The
index has so far focused on lead
times for container shipping,
aviation, postal parcels, EXIM
delays (dwell time).
“At the moment, the world
bank’s LPI is based on a very
subjective analysis. We are trying to
EYE ON THE PODIUM
India’s performance in LPI (Rank)
2012 46
2014 54
2016 35
2018 44
2023
38
Note: Rankings are based on six key
metrics — customs, infrastructure,
internal shipment, logistics
competence, tracking and tracing,
and timelines Source: World Bank
bring in objectivity by impressing
upon the World Bank how we are
using technology to improve
logistics in the country by way of
Unified Logistics Integration
Platform (Ulip),” union special
secretary for logistics Sumita
Dawra had said in September.
In June, Rajesh Kumar Singh,
secretary, Department of
Promotion of Industries and
Internal Trade (DPIIT) had
reportedly met World Bank
officials during his visit to the US
and presented India’s case for
change in the ranking
methodology. Queries sent to a
World Bank spokesperson
remained unanswered at the time
of going to press.
“LPI scores have two
limitations. First, the experience
of international freight
forwarders might not represent
the broader logistics environment
in poor countries, which often
rely on traditional operators…
Second, for landlocked countries
and small island states, the LPI
might reflect access problems
outside the country assessed,
such as transit difficulties,” the
World Bank said in the
methodology section of LPI 2023.
Landlocked countries can face
numerous challenges despite trade
facilitation efforts due to the
complexities of international
transit systems, and these
inefficiencies can't be eliminated
with domestic reforms, according
to the multilateral institution.