Cargo Breaking News
Arun Kumar, President, AMTOI said, “The Logistics Performance Index (LPI) is more than just a metric—it reflects the overall health and efficiency of a country’s logistics ecosystem. While it is encouraging to see India’s, ranking improve in recent years, we must not lose sight of the broader picture. As the world’s fourth-largest economy, ranking 38th on the LPI suggests that there are still 37 nations outperforming us in critical logistics parameters. That gap demands serious introspection. One key bottleneck lies in how we diagnose the problem. Early on, the government cited a logistics cost figure of 14% of GDP and cantered its strategy solely on cost reduction. But this was based on questionable data and led to a narrow, often misguided, approach, what I would call a classic case of data-driven misdiagnosis.
The real issues are far more systemic and behavioral. Our logistics sector continues to suffer from:
- Fragmented regulatory frameworks across ministries and states.
- Over-regulation and under-facilitation.
- A lack of trust between regulators and service providers.
- Slow adoption of standardization, digital integration, and interoperable systems.
To address these, we must dig deeper, fixing the mindset that governs how we approach logistics policy. As Chanakya rightly advised, to solve a problem permanently, one must strike at its root. The root here is a legacy mindset that views business with suspicion and sees regulation as control rather than enablement. We need a fundamental shift, from process-centric governance to outcome-driven facilitation. This means building trust, embracing transparency, enabling risk-based compliance, and treating the logistics sector not just as a service industry, but as a national strategic asset. Only then will India’s LPI ranking truly reflect its economic standing and more importantly, its real potential.”
