Current Affairs
Daily Bits

Centre launched the

  • Posted By
    10Pointer
  • Categories
    Economy
  • Published
    29th Jul, 2021

Context

Centre launched the "Secured Logistics Document Exchange (SLDE)" along with a Calculator for Green House Gas Emissions to improve ease of doing business.

What is "Secured Logistics Document Exchange"?

  • The document exchange is a digital initiative to reduce logistics costs, improve logistics efficiency, and promote multi-modality and sustainability in logistics.
  • It will replace the manual process of generation, exchange and compliance of logistics documents with a digitized, secure and seamless document exchange system.
  • This will enable the keeping and regulation of logistics-related documents digitally using Aadhaar and blockchain-based security protocols for data security and authentication.
  • It will also provide a complete audit trail of-
    • document transfer
    • faster execution of the transaction
    • lower cost of shipping and overall carbon footprint
    • easy verification of the authenticity of documents
    • lowered risk of fraud, etc.

The need

  • The initiatives have been launched to fill the gap where no action has yet been taken by private players or ministries.

Significance

  • Improved India’s ranking in the Logistics Performance Index.

Logistics Performance Index (LPI)

  • LPI  is an interactive benchmarking tool for logistics.
  • Created by: World Bank
  • It helps countries to identify the challenges and opportunities they face in their performance on trade logistics and suggest what they can do to improve their performance.
  • Dimensions: It is the weighted average of the country scores on six key dimensions:
    • customs performance
    • infrastructure quality
    • ease of arranging shipments
    • logistics services quality
    • consignments tracking and tracing
    • timeliness of shipments.
  • Germany and Sweden are the most efficient and highest-ranked LPI countries as per the 2018 LPI.
  • India was ranked at 44th position in 2018.
  • Improved logistics efficiency, reduce cost, and will promote sustainability.

Status of India’s logistic sector

  • The Indian logistics sector is growing at a Compound annual growth rate (CAGR) of 10.5%.
  • The comprehensive logistics costs amount to almost 14% of India’s GDP.

Indian government initiatives in the logistics sector

  • The government aims to reduce the logistics cost to 8 percent in five years.
  • Multi-Modal Logistics Parks with seamlessly synergized logistics services are also being established.
  • The Integrated Logistics and Manufacturing Zones (ILMZs) that combine railway, road and port infrastructure will be made available along with the manufacturing set-up to ensure the smooth functioning of container management and movement along with the operations of the manufacturers.
  • A National Logistics Policy is also set to be launched soon.
    • Under the policy, a National Logistics Council (NLC), Central Advisory Committee on Logistics (CACL), and an Empowered Group of Secretaries (eGoS) are planned for effective coordination and implementation.
  • The development of the Eastern and western fright Corridor is also an initiative towards achieving logistics support.
  • Along with the SLDE, the Centre also launched a Green House Gas Emission calculator as well.
    • The GHG Calculator is an efficient, user-friendly tool and provides for calculating and comparing GHG emissions across different modes.