Guwahati: Stakeholders have expressed confidence in the logistics ecosystem of the Northeast region and have appreciated the efforts of States such as Assam, Tripura, Sikkim, Arunachal Pradesh, and Nagaland on multiple fronts.
Union Commerce and Industry Minister Piyush Goyal today released the fifth edition of Logistics Ease Across Different States LEADS (2023).
Logistics Ease Across Different States (LEADS) is a unique initiative of the Government of India, focused on assessing the performance of the logistics eco-system across States and Union Territories (UTs). It provides valuable insights to States and UTs about key drivers of logistics performance, which States / UTs can leverage for effective policy and decision-making.
Within the North-East Group, Sikkim and Tripura have moved from Fast Movers to Achievers category while Arunachal Pradesh and Nagaland have moved from Aspirers to Fast Movers. Assam has retained its Achiever status while Manipur, Meghalaya, and Mizoram continue to be in the Aspirers category.
States / UTs were classified into three performance levels – Achievers, Fast Movers and Aspirers, based on their logistics performance.
“The LEADS 2023 survey findings reflect stakeholders’ confidence in the logistics ecosystem of the North-East region. Not only have the average cores across pillars have improved as compared to 2019, but there has also been a reduction in variation of scores of states (top v/s bottom) within the Group. Especially the gap in Logistics Infrastructure pillar has reduced significantly when compared to 2019, emphasizing focussed attention by States towards focusing on quality terminal services, improving pricing of logistics services levels across supply chains, facilitated by supporting policies,” the report said.
The report says while each pillar has registered improvement, the Logistics Infrastructure pillar stands out with 21% growth over the said period which is a further testament to the coordinated efforts for the development of infrastructure in the North-East by the Centre and states.
Industry interactions have specifically appreciated the efforts of states such as Assam, Tripura, Sikkim, Arunachal Pradesh, and Nagaland on multiple fronts including the development of infrastructure, formulation of logistics policies, and enhancing regulatory ease of doing business.
Assam being the logistics gateway to the North-East region, the state is progressing ahead with the development of transport and logistics infrastructure and also has an enabling policy environment. Assam Logistics and Warehousing Policy, 2022, aims to transform the state into a regional logistics hub by incentivizing private investments and encouraging sustainability and climate resilience in the region. “Assam being the largest manufacturer of Tea; few improvisations in the warehouse facility and improvement in ICD facilities will bring a strong logistics coverage in the vicinity,” the report said.
On Arunachal Pradesh which has moved ahead, it said the state is actively implementing multiple measures to enhance the overall efficiency of the logistics ecosystem, which include preparation of Logistics policy and development of road and other infrastructure in addition to proactively reaching out to the stakeholders.
“The state could focus on improving the existing services by tying up with private stakeholders for devising and imparting logistics skill courses. Additionally, there could be a focus on enhancing mobile connectivity across the state to improve the availability of track and trace services, ultimately enhancing safety and security,” the report said.
In Manipur, where user satisfaction levels are generally lower than the average of North-East Group for all indicators across pillars looking ahead, the state could benefit from formulating a state Logistics Master Plan to drive efficiency improvements and facilitate investments within the logistics sector and undertake consultation with the logistics stakeholders for educating and informing them about the initiatives state is undertaking for the development and improvement of the logistics sector.
In the case of Meghalaya, the state could benefit from having a logistics policy and taking steps to prepare a Logistics Master Plan to drive efficiency improvements and facilitate investments within the logistics sector.
It has asked Mizoram to consider preparing a comprehensive Logistics Master Plan to guide strategic interventions, engaging in stakeholder consultations to better understand the challenges faced by the industry, studying successful initiatives from similar states to drive efficiency improvements and actively facilitating investments within the logistics sector, which will play a pivotal role in enhancing the state’s logistics ecosystem.
Nagaland, categorized as a Fast Mover in LEADS 2023, indicating a substantial enhancement in the overall perception of the state’s logistics environment since LEADS 2019, has been proactively undertaking a range of initiatives to boost the efficiency of its logistics ecosystem. “The state has been actively engaging in ongoing dialogues with private stakeholders to effectively communicate and educate them about the state’s initiatives. This proactive engagement has positively impacted the state’s performance assessment,” the report said.
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Sikkim is currently formulating its state policy to strengthen the state’s standing in the manufacturing sector by implementing regulatory reforms, streamlining procedures, and fostering export-related activities.
Tripura has been proactively undertaking a range of initiatives to boost the efficiency of its logistics ecosystem and has notified its Integrated Logistics Policy, 2022, which has created a positive impact on the performance assessment of the state. “The state could further focus on improving current services by collaborating with private stakeholders to devise and offer logistics skill courses. Furthermore, it could also explore replicating successful initiatives from other states,” the report said.
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