The Logistics Ease Across Different States (LEADS) project, which will survey logistics service providers to statistically analyse the performance of states on logistics characteristics, has begun for the year 2022. The exercise is significant in the context of PM Gati Shakti, which intends to synchronise and integrate activities at the state level to improve the logistics ecosystem by building multimodal connectivity infrastructure. The LEADS inputs will aid states in channelling capital investment in infrastructure under PM Gati Shakti, for which a Rupees one lakh crore interest-free credit support was proposed in Budget 2022-23.
Development of an efficient, cost-effective and accessible logistics ecosystem will act as the launchpad to achieving the $5-trillion economy. It will increase the competitiveness of exports and make provision of goods domestically cheaper. The logistics cost was estimated to be $293 billion in 2016, which roughly stood at 13 per cent of GDP in that year. This figure is quite high vis-a-vis average logistics cost estimates for developed countries, which stands at around 8-9 per cent of GDP.
