Logistics performance as facilitator to trade performance: An Indian perspective

Abstract

With the growing realisation of the importance of global integration in the production and consumption value chain, the importance of maritime logistics and transportation facilitating international trade is profoundly recognised. Further, a proliferation of collaborative trade agreements among different trade partners is ascribed to play a significant role. However, such external dynamics and engagements in international trade would propel blue economic growth if backed by strong maritime logistics initiatives and establishment. In this context, deep routed challenges, particularly in the domestic maritime logistics sector in manufacturing hubs like India, could potentially hamper her comparative advantages in international trade. It is in this context that this paper comes as an intercession by analysing India’s Logistics Performance Index (LPI) and its impact on trade performance. Also, this paper provides a comparative analysis of India’s LPI with that of other trade competitors from South and East Asia and tries to find out challenging areas of maritime logistics for India and suggest the required policy prescription thereof. Such acknowledgement is a compulsion for a country like India when escalated uncertainties due to episodes of COVID-19, the Russia-Ukraine War, and dips in the business cycles of many countries that demanded green and resilient supply chain and logistics practices. The paper prescribes that domestic reforms to ease out challenges in Indian maritime logistics coupled with external engagements would provide a flat form for India to reap the optimal gains from international trade.