Andhra slips in logistics index 2024

While Telangana retained its place among the ‘achievers’ in the logistics index chart 2024, Andhra Pradesh skidded to the ‘fast movers’ group in the Logistics Ease Across Different States (LEADS) 2024 report.

The report, released recently by the Commerce & Industry Ministry, underlines “the need for renewed efforts” on the part of Andhra Pradesh. It subsumes all states into four categories: coastal, landlocked, Union Territories, and North Eastern states. The best performing states in the ‘achievers’ group are Gujarat, Karnataka, Maharashtra, Odisha, and Tamil Nadu. Andhra Pradesh and Goa are in the ‘fast movers’ group, which are the second-best performers.

Below that is the ‘aspirer’s group, which had Kerala and West Bengal in the coastal category, and Chhattisgarh and Jharkhand in the landlocked category.

In the LEADS 2023 report, Andhra Pradesh was in the ‘achievers’ group. “States such as Andhra Pradesh and Tamil Nadu need to invest in rail and terminal infrastructure.” States such as Andhra Pradesh and Tamil Nadu have made advancements but require improvements in seamless entry facilitation and regulatory frameworks, it added.

In three out of five indicators of logistics infrastructure, Andhra Pradesh’s performance was below that of the national average, and in two above it.

Andhra Pradesh is taking initiatives in the logistics sector through its state logistics policy and action plan, ease-of-doing business initiatives, and industry collaboration, the report said. “The state is focusing on enhancing infrastructure through Multi-Modal Logistics Parks (MMLPs), adopting renewable energy at ports, and improving road and rail connectivity. Skill development programmes and digital platform plans to further support workforce readiness and streamlined operations.”

The state may also actively leverage public-private partnerships or PPPs to implement key infrastructure projects.

Andhra Pradesh excels in ‘Ease of Government Facilitation,’ surpassing both the group and national averages. However, the state is behind in terms of ‘Ease of Entry from Neighbouring states/UTs’, highlighting a need for improved regulatory processes, the LEADS report said. “There is no established ‘Grievance Redressal Mechanisms,’ with both the group and national averages being low, which indicates an area for improvement in the state.”