Political Analysis: Economics

India can add 8% to its exports if it puts its last mile connect in the fast lane

India's the logistics sector itself is highly unorganised, fragmented and currently mired in multiple challenges leading to operational inefficiency on several fronts.

In India, the logistics cost as a percentage of its GDP stands at 14%. This cost is pretty high compared to the similar cost in the US (9.5%), Germany (8%) and Japan (11%).

According to the logistics performance index (LPI), which is the weighted average of a country's score on the six key dimensions, India lags behind most nations in Asia. Germany tops the Index, while India is ranked at 44.