Logistics Performance Index

Indian Economy glossary

Also called: LPI · Topic: Infrastructure: Transport, Communications and Energy · NCERT: Beyond NCERT

Meaning

The Logistics Performance Index (LPI) is the World Bank's ranking of how efficiently countries move goods in trade. It has six parts:

  1. customs;
  2. infrastructure;
  3. international shipments;
  4. logistics competence;
  5. tracking and tracing;
  6. timeliness.

A better rank means goods move faster and more cheaply, which makes exports more competitive.

Example

India ranked 38th out of 139 countries in LPI 2023, up from 44th in 2018. The National Logistics Policy of 17 September 2022 aims to take India into the top 25 by 2030.

Don't confuse with

  • Logistics cost: Logistics cost is India's total spending on transport, warehousing, inventory and administration as a share of GDP. The DPIIT-NCAER study (2023) put it at 7.8–8.9% of GDP for 2021-22. The LPI is a ranking against other countries, not a cost figure.

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