The Logistics Performance Index (LPI) serves as a vital international benchmarking tool developed by the World Bank. It assesses and ranks the logistics performance of various countries, providing valuable insights into their logistics efficiency.
The primary purpose of the LPI is to evaluate how effectively a country moves goods, facilitating connections between suppliers and consumers. This tool helps identify strengths and weaknesses within logistics systems globally.
The World Bank periodically releases the LPI report, shedding light on the current state of global logistics. This report is essential for policymakers, businesses, and researchers who seek to understand logistics trends.
The LPI is based on six key parameters that contribute to a country’s overall logistics performance:
In the 2023 LPI report, India's logistics performance has shown notable trends and developments. The country’s rank reflects its efforts to enhance logistics efficiency, infrastructure, and service quality, critical for economic growth and development.
Q1. What is the Logistics Performance Index (LPI)?
Answer: The LPI is a benchmarking tool by the World Bank that evaluates and ranks countries based on their logistics performance, focusing on efficiency in moving goods.
Q2. Why is the LPI important?
Answer: The LPI is crucial for understanding logistics efficiency, helping countries identify areas for improvement and facilitating better trade and economic policies.
Q3. How often is the LPI report published?
Answer: The World Bank periodically releases the LPI report, typically every two years, providing updated insights into global logistics performance.
Q4. What factors influence a country's LPI ranking?
Answer: A country’s LPI ranking is influenced by customs efficiency, infrastructure quality, domestic shipment ease, logistics competence, tracking reliability, and shipment timeliness.
Q5. How can India improve its logistics performance?
Answer: India can enhance its logistics performance by investing in infrastructure, improving customs processes, and enhancing the quality of logistics services.
Question 1: What does the Logistics Performance Index (LPI) measure?
A) Economic growth
B) Logistics performance of countries
C) Trade volume
D) Infrastructure development
Correct Answer: B
Question 2: Which organization publishes the Logistics Performance Index?
A) International Monetary Fund
B) World Trade Organization
C) World Bank
D) United Nations
Correct Answer: C
Question 3: How many parameters are used to rank countries in the LPI?
A) Four
B) Five
C) Six
D) Seven
Correct Answer: C
Question 4: What aspect does the 'Timeliness' parameter in LPI focus on?
A) Customs efficiency
B) Shipment punctuality
C) Infrastructure quality
D) Logistics skills
Correct Answer: B
Question 5: What is a potential benefit of improving logistics performance?
A) Reduced trade volume
B) Increased economic growth
C) Higher transportation costs
D) Slower customs processes
Correct Answer: B
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