The world over, poor logistics often means poor trade. In other words, how efficiently countries trade defines how they grow and compete in the global economy. For India, good logistics will also play a critical role in the success of the “Make in India” initiative, enable small-scale producers to access newer markets, and allow farmers to benefit from the timely uptake of perishable produce. India has already taken a major step forward in this direction. When it is rolled out, the goods and services tax (GST) will help integrate this vast and diverse country, transform it into one common market, eliminate inefficient taxation, and go a long way in boosting the manufacturing sector. But much more can be done. Although these activities are essentially carried out by private firms, their efficiency depends upon public infrastructure. This includes both “hard” or physical infrastructure as well as “soft” or institutional infrastructure such as systems, procedures and regulations. The World Bank’s 2016 Logistics Performance Index (LPI), which ranks 160 countries every two years, found that India moved up to 35th place internationally, compared to 54 in 2014. In other words, within two years, India had improved its logistics performance significantly. But it is also important to improve connections between India’s states.

(Live Mint)