India's rank in the recently released World Bank's Logistics Performance Index 2023 has improved by six places.
About Logistics Performance Index (LPI):
- It is released by World Bank.
- It is an interactive benchmarking tool created to help countries identify the challenges and opportunities they face in their performance on trade logistics and what they can do to improve their performance.
- It measures the ease of establishing reliable supply chain connections and structural factors that make it possible, such as the quality of logistics services, trade and transport-related infrastructure, as well as border controls.
- Highlights of LPI 2023:
- The LPI 2023 allows for comparisons across 139 countries.
- The LPI 2023, for the first time, measures the speed of trade with indicators derived from big datasets tracking shipments.
- Singapore and Finland are the most efficient and highest-ranked LPI countries as per the 2023 LPI.
- India is ranked 38 out of 139 countries, climbing six places from the previous index.
- Two major factors for India's jump in the index could be modernisation and digitalisation, which the report quotes as a reason for emerging economies like India to leapfrog advanced countries.
Q1) What is the Ease of Doing Business Index?
The Ease of Doing Business (EoDB) index is a ranking system established by the World Bank Group. In the EODB index, ‘higher rankings’ (a lower numerical value) indicate better, usually simpler, regulations for businesses and stronger protections of property rights.