Economy
Make in India also requires Move in India push
Logistics forms the backbone of domestic and international trade in any economy and is a critical factor for competitiveness. Besides providing employment and movement of goods, an efficient logistical network enables increases in the speed of doing business.
 
A pertinent question is how does one measure the logistics performance of a country and compare it with that of other economies? A recent biannual report of the World Bank throws light on this. However, it must be noted that the performance on Logistics Performance Index (LPI) is a measure of performance on international supply chains and does not capture the reality within a domestic setting. For that, the domestic LPI scores are done in the same 'Connecting to Compete 2016' report.
 
The international LPI is based on an assessment of performance along six key indicators -- some on the input side and the others on the outcome side of the supply chain service delivery. These pertain to border control agencies, infrastructure and services quality on the input side. On the outcome side are competitively-priced international shipments, tracking and tracing and timeliness.
 
The data is based on feedback from logistics professionals on the ground.
 
In the present edition of the index, India's performance is by far the best since 2007, with the country improving to 35. In 2014, India was ranked 54 and so the jump this time around is a tremendous 19 ranks. With this, India is one of the best-performing economies relative to the average income level of its people.
 
So far the World Bank has put out five editions of the report since its inception in 2007 with the most recently being released in June 2016. There are three interesting insights from the report and associated data sets that merit attention.
 
First, it is interesting to note that the top 10 ranks on the index are occupied by the high-income economies and BRICS economies see huge dispersion in ranks and scores. Germany has emerged as the best country with an LPI score of 4.23 and Luxembourg is second with 4.22.
 
An interesting measure, which is the percentage of the highest performer, is also mentioned. India, which has a score of 3.42, is thus performing at a level of roughly three fourth's of Germany's. Within the BRICS economies, India is placed below South Africa (20) and China (27), while it is placed above Brazil (55) and Russia (99).
 
Second, India's performance has seen a rise along key dimensions like customs (up 27 ranks from 2014) and tracking and tracing (up 24 ranks from 2014). It has shown modest improvements in international shipping (up five ranks from 2014) and timeliness (up nine ranks from 2014). However, it is worth noting that India has moved up since 2014 in all key six indicators used to compute international LPI. This shows that despite the trade shrinkage due to prevailing international conditions, Indian logistics providers are seeing improvements in customs procedures, tracking of shipments and improvements in infrastructure within the sector. 
 
Third, the domestic LPI offers rich insights on how a country is perceived by its logistics providers. This has two key dimensions namely -- environment and institutions and performance. In the first aspect, an astounding 63% of respondents feel port charges are high in India. Similarly, on the quality of infrastructure, a massive 60% feel roads are low quality/very low quality in India. For sources of delays, maritime transshipment is seen by 36% of the respondents as a major cause of delays.
 
On the performance aspect, India needs to improve its performance on the percentage of shipments meeting quality criteria, which is at 68.7%. These responses clearly lay out areas where governments at the central and state levels have to improve over the long term.
 
In the years ahead, India should aim to improve performance along key dimensions on the international as well as domestic LPI, where it is relatively a laggard. These include focusing on the timeliness of shipments and on removing infrastructural bottlenecks and improving the quality of infrastructure. It has done well on this year's Index owing to the commitment to improve connectivity with the world. Hopefully in the years ahead, along with focusing on Make in India there is also a commitment to Move in India.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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NASA's Juno mission successfully enters Jupiter's orbit
Cheers erupted at NASA's California-based Jet Propulsion Laboratory on Tuesday as its solar-powered Juno spacecraft entered the orbit around Jupiter -- ending its nearly five-year journey to study the gas giant like never before.
 
According to Scott Bolton, principal investigator of Juno from the Southwest Research Institute in San Antonio, the spacecraft is now in orbit around Jupiter.
 
“You’re the best team ever! We just did the hardest thing NASA has ever done,” shouted Bolton as scientists hugged each other after the successful completion of a seemingly tough mission.
 
“Success! Engine burn complete. #Juno is now orbiting #Jupiter, poised to unlock the planet's secrets,” NASA tweeted.
 
At 8.48 am on Tuesday (India time), Juno fired its main engine to begin a 35-minute burn to get into orbit around Jupiter. The burn time was within one second of the predicted time, placing it in the orbit it needed.
 
Juno’s main engine has now been switched off and will be turned on in couple of days.
Once in Jupiter's orbit, the 1,600 kg spacecraft will circle the Jovian world 37 times during 20 months, skimming to within 5,000 km above the cloud tops.
 
This is the first time a spacecraft will orbit the poles of Jupiter, providing new answers to ongoing mysteries about the planet's core, composition and magnetic fields.
 
"As Juno barrels down on Jupiter, the scientists are busy looking at the amazing approach science the spacecraft has already returned to Earth. Jupiter is spectacular from afar and will be absolutely breathtaking from close up," Bolton earlier said in a NASA statement.
 
During the flybys, Juno will probe beneath the obscuring cloud cover of Jupiter and study its auroras to learn more about the planet's origins, structure, atmosphere and magnetosphere.
 
Juno's name comes from Greek and Roman mythology. The mythical god Jupiter drew a veil of clouds around himself to hide his mischief, and his wife -- the goddess Juno -- was able to peer through the clouds and reveal Jupiter's true nature.
 
The four largest moons of Jupiter are named the Galilean moons because they were discovered by Galileo Galilei in 1609.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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PE investments in India dip 46% in 2016's first half
Private equity investments in India, excluding the real estate sector, added up to $5.8 billion in the first six months (H1) of the calendar year 2016, nearly 46% less than $10.6 billion recorded during the same period last year, an online research platform said on Monday.
 
"On the quarter basis, deal value is down 62% from $6.1 billion to $ 2.2 billion between April-June quarter of the last year and the same quarter in 2016; the lowest investment received in the second quarter since 2013," the online financial research platform VCCEdge said in its Deal Report H1 CY 2016.
 
Deal volume was recorded at 643 deals, down 13% compared to 737 deals in the corresponding period last year.
 
Private equity exits down to a five-year low on a sequential basis. Private equity investors unlocked $1.4 billion worth of investments across 97 exits in H1, a statement said.
 
Venture and late stage capital also declined significantly, down 64% and 55% in the first six months of 2016 as compared to same period last year.
 
According to report, angel and seed investments grew 16% to 368 deals in H1 CY16 from 317 deals a year ago, while deal value slipped 25% to $100 million from $134 million, reflecting a drop in average ticket-size.
 
The report said the first-half of 2016 saw 479 M&A (Merger & Acquisition) deals worth $14.5 billion being struck. Compared to same period last year, deal value is up 76% while deal volume remains unchanged.
 
Domestic M&A deals saw an uptick in deal value and volume, growing 86% and 10%, respectively, the report said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  

 

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