Logistics Performance Index (LPI)

1️⃣ What is the Logistics Performance Index?

The Logistics Performance Index (LPI) measures how efficiently countries move goods across and within borders.

It evaluates the quality of logistics systems including:

• Customs clearance
• Infrastructure
• Shipping and transport
• Logistics services
• Tracking of shipments
• Delivery timeliness

It essentially measures the efficiency of supply chains and trade logistics.

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2️⃣ Who Publishes It?

Published by:

World Bank

Prelims trap:

Do not confuse it with indices published by WEF or UNDP.

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3️⃣ Indicators Used

The LPI evaluates six key components:

1️⃣ Customs efficiency
2️⃣ Quality of trade and transport infrastructure
3️⃣ Ease of arranging international shipments
4️⃣ Competence of logistics services
5️⃣ Tracking and tracing ability
6️⃣ Timeliness of shipments

UPSC may ask which of these are included.

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4️⃣ India’s Latest Rank

📌 Logistics Performance Index 2023

India ranked 38th out of 139 countries

This was a significant improvement compared to earlier rankings.

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5️⃣ Why It Matters for India

India has been improving logistics through initiatives like:

• PM Gati Shakti
• National Logistics Policy
• Infrastructure development
• Port modernization

UPSC may link these policies with logistics performance.

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6️⃣ What LPI Does NOT Measure

❌ Poverty
❌ Innovation
❌ Happiness
❌ Environmental performance

It measures trade logistics efficiency.

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7️⃣ Static Linkage

Relevant concepts:

• Global supply chains
• Trade facilitation
• Infrastructure development
• Export competitiveness

It may appear in economy or international trade questions.

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8️⃣ Common Prelims Traps

• Confusing publisher (World Bank vs WEF).

• Mixing it with Global Competitiveness Index.

• Thinking it measures only transport infrastructure.

• Ignoring customs efficiency as a parameter.

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9️⃣ Likely Question Patterns

• Which organisation publishes Logistics Performance Index?
• Which of the following are components of LPI?
• What does the index measure?
• Which policies improve logistics performance in India?

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🔁 Quick Recall Box

✔ Published by: World Bank
✔ Latest India rank (2023): 38 / 139
✔ Measures logistics & supply chain efficiency
✔ Includes customs, infrastructure, shipment tracking