New Delhi - Learn about India's impressive rise in the Logistics Performance Index (LPI) rankings, a World Bank assessment that has positioned India at the 38th spot. This achievement aligns with India's aspirations of becoming a leading global logistics hub, marking a significant step towards its goal of becoming a developed economy. Currently, India's logistics costs constitute around 13-14% of its GDP, and the target is to reduce this to single digits by 2030.

Why is the reduction of logistics costs to single digits crucial for India, and how do the National Logistics Policy and the Gati Shakti National Master Plan contribute to this overarching goal? Additionally, what initiatives are required to elevate India to international logistics standards, securing its position within the top 25 globally? Jagannarayan Padmanabhan, Senior Director & Global Head of Consulting for Transport, Logistics & Mobility at CRISIL Market Intelligence and Analytics, provides insights into these complexities.

It's important to emphasize the significance of establishing multi-modal hubs with seamless connectivity among diverse transportation modes. Currently, the majority of freight transportation relies on roadways, followed by railways. The objective is to elevate the share of railways beyond 50% and promote the growth of waterways.

Consider the role of proper National Logistics Policy implementation in achieving success, along with the anticipation of fruitful results from investments over the coming years. Notably, the Jawaharlal Nehru Port has significantly reduced its turnaround time to a mere 0.9 days, surpassing even Singapore's standards.

Jagannarayan Padmanabhan also draws parallels from international benchmarks set by countries such as the United States, Singapore, and Germany, offering insights that India can learn from. For instance, Singapore boasts an average customs clearance time of 10-15 minutes, while the US possesses a robust highway system.