India’s persistent gap in the Logistics Performance Index (LPI), notwithstanding the PM GatiShakti National Master Plan, is structurally linked to:
Fragmented multimodal coordination
The World Bank's Logistics Performance Index rates countries on customs, infrastructure, ease of shipments, logistics quality, tracking and timeliness.
In India, roads, railways, ports, waterways and airports are run by different ministries and agencies, so cargo moving across modes faces poor connectivity, repeated handling and delays; this fragmented multimodal coordination keeps logistics costs high.
PM GatiShakti tries to fix this with a common digital master plan, but integration across modes takes time, so the structural gap persists.
Exchange rate misalignment, import tariff levels and agricultural subsidies are trade or fiscal policy matters and do not measure the physical movement efficiency that LPI captures.
Hence, the answer is Fragmented multimodal coordination.
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