Roads, Highways, Cargo, Air-Cargo and Logistics infrastructure – Bharatmala, LEEP, SetuBharatam, etc.

LEADS 2024’ Report Released

Explained | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Logistics Ease Across Different States (LEADS) 2024 report;

Mains level: Significance of LEADS;

Why in the News?

The Logistics Ease Across Different States (LEADS) 2024 report, released by the Union Minister, outlines key objectives and performance metrics aimed at enhancing India’s logistics sector.

What are the aims and Objectives of  Logistics Ease Across Different States (LEADS)?

  • Enhance Logistics Performance: The primary aim is to improve logistics efficiency across states and union territories (UTs), thereby facilitating trade and reducing transaction costs essential for economic growth.
  • Action Plans for Investment: States are encouraged to collaborate with the private sector to develop action plans that attract investments in logistics.
  • Sustainable Practices: Emphasis is placed on promoting green logistics and adopting sustainable practices in logistics operations.
  • Technology Adoption: The report advocates for the integration of advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), and Data Analytics to enhance operational efficiency.
  • Skill Development: There is a focus on workforce inclusivity and skill development to boost the logistics sector’s capabilities.

Parameters Evaluated in LEADS 2024

LEADS 2024 evaluates logistics performance based on four key pillars:

  • Logistics Infrastructure: Assessment of physical infrastructure supporting logistics activities.
  • Logistics Services: Evaluation of the quality and efficiency of logistics services available.
  • Operating and Regulatory Environment: Analysis of the regulatory framework affecting logistics operations.
  • Sustainable Logistics: Newly introduced pillar focusing on environmental sustainability within the logistics sector.

Key Performance Highlights of 2024

  • Achievers by Group:
      • Coastal Group Achievers: Gujarat, Karnataka, Maharashtra, Odisha, Tamil Nadu.
      • Landlocked Group Achievers: Haryana, Telangana, Uttar Pradesh, Uttarakhand.
      • North-Eastern Group Achievers: Assam, Arunachal Pradesh.
      • Union Territories Achievers: Chandigarh, Delhi.
  • Fast Movers and Aspirers:
    • Fast Movers include states like Andhra Pradesh, Goa (Coastal); Bihar, Himachal Pradesh (Landlocked); Meghalaya, Mizoram (North-Eastern).
    • Aspirers include Kerala, West Bengal (Coastal); Chhattisgarh, Jharkhand (Landlocked); Manipur (North-Eastern).

What is the role of Public-Private Partnerships (PPPs) and skill development in transforming India’s logistics sector as per the recommendations in the LEADS 2024 report?

Role of Public-Private Partnerships (PPPs)

  • Enhancing Infrastructure and Efficiency: The report advocates for leveraging PPPs to improve logistics infrastructure and services. By collaborating with private entities, states can enhance operational efficiency, reduce costs, and attract investments essential for developing robust logistics frameworks.
  • Facilitating Multi-Modal Hubs: PPPs are encouraged to establish multi-modal logistics hubs, which can streamline operations and improve last-mile connectivity. This approach aims to create an integrated logistics network that enhances trade facilitation across regions.
  • Promoting Transparency and Accountability: The involvement of private partners in logistics projects is expected to promote transparency through competitive bidding processes, thereby ensuring better governance and accountability in project execution.

Role of Skill Development

  • Workforce Inclusivity: The report highlights the importance of skill development initiatives aimed at fostering inclusivity within the workforce. By enhancing the skills of workers, particularly women, the logistics sector can benefit from a more diverse talent pool.
  • Adoption of New Technologies: Skill development programs are crucial for equipping the workforce with knowledge about advanced technologies such as Artificial Intelligence (AI) and Data Analytics. This technological proficiency is essential for improving operational efficiencies and adapting to evolving industry demands.
  • Boosting Sector Competitiveness: By focusing on skill enhancement, the logistics sector can increase its competitiveness on a global scale. A well-trained workforce can lead to improved service delivery, innovation, and overall productivity within the sector.

Way forward: 

  • Strengthen Public-Private Partnerships (PPPs): Foster collaboration between states and the private sector to develop multimodal logistics hubs, enhance last-mile connectivity, and improve infrastructure transparency through competitive bidding processes.
  • Promote Sustainability and Skill Development: Integrate green logistics practices, adopt advanced technologies (AI, ML), and implement comprehensive skill development programs to create an inclusive and efficient logistics ecosystem.

Mains PYQ:

Q What is the significance of Industrial Corridors in India? Identifying industrial corridors, explain their main characteristics. (UPSC IAS/2018)

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