The world bank recently published its report on global trade logistics. Once every two years, the World Bank produces the Logistics Performance Index (LPI) which measures on-the-ground logistics performance in more than 150 countries worldwide. International trade can be substantially improved by reducing logistical barriers and the goal of developing the LPI is to help governments, private sector players, and other entities understand the trading challenges they and their trading partners face. This year (2012) India’s LPI rank is 46 amongst 155 nations. Singapore heads the list.
The report summarizes some of the key challenges faced by developing and under-developed nations. These include global recession and shifting government priorities, the quality and availability of trade-related infrastructure (especially road networks), management of logistics, and customs and regulatory barriers. The report also points to the fact that global and local supply chains, which continue to become more complex, are critically affected by the performance of logistics networks.