Logistics Index Chart 2024

The Logistics Index Chart, released by the Commerce and Industry Ministry, serves as an indicator of the efficiency of logistical services essential for promoting exports and economic growth.

Achievers

• Gujarat
• Karnataka
• Maharashtra
• Odisha
• Tamil Nadu
• Delhi
• Chandigarh
• Haryana
• Telangana
• Uttar Pradesh
• Uttarakhand
• Assam
• Arunachal Pradesh

Fast Movers

• Andhra Pradesh
• Goa
• Bihar
• Himachal Pradesh
• Madhya Pradesh
• Punjab
• Rajasthan
• Meghalaya
• Mizoram
• Nagaland
• Sikkim
• Tripura
• Dadra and Nagar Haveli and Daman and Diu
• Jammu and Kashmir
• Lakshadweep
• Puducherry

Aspirers

• Kerala
• West Bengal
• Chhattisgarh
• Jharkhand
• Andaman and Nicobar Islands
• Ladakh

Changes in Rankings

• Maharashtra, Odisha, Uttarakhand, and Arunachal Pradesh improved from 'Fast Movers' and 'Aspirers' in 2023 to 'Achievers' in 2024.
• Punjab has slipped from 'Achievers' to 'Fast Movers' in 2024.
• Andhra Pradesh has moved from 'Achievers' in 2023 to 'Fast Movers' in 2024.

India's Foreign Exchange Reserves Decline

India's foreign exchange reserves experienced a decline of $4.112 billion in the week ending December 27, totaling $640.279 billion. This decline is attributed to the Reserve Bank of India's interventions aimed at stabilizing the rupee, which has been retreating against the US dollar.

Key Factors and Statistics

• The current decline marks the fourth consecutive weekly fall in foreign exchange reserves.
• Since October, the reserves have decreased by over $60 billion.
• Heavy outflows of foreign institutional investment over the past two months have contributed to this decline.

Causes of Decline

• The Reserve Bank of India has been selling dollars from its reserves to slow the rupee's depreciation.
• The rupee has faced pressure as overseas investors seek safer havens and take dollars out of the country.
• The rupee closed at a new low of 85.78 against the dollar, marking a 1.3% depreciation over the month.

Impact of Global Currency Fluctuations

• The depreciation of reserves held in other global currencies such as the euro, pound, and yen has also affected the overall reserves as the US dollar has strengthened globally.

Historical Context

• The all-time high for India's forex reserves was $704.885 billion on September 27.
• Since achieving that peak, reserves have generally been depleting week after week, with some exceptions.

India-US Bilateral Trade Relations

Commerce Minister Piyush Goyal emphasized the Indian government's commitment to strengthening ties with the new US administration under President-elect Donald Trump.

• India has maintained strong bilateral relations with past US administrations under leaders like Barack Obama, Donald Trump, and Joe Biden.
• Concerns are present regarding potential tariffs from the US targeting India, along with China, Mexico, and Canada.

Impact on Indian Exports

• The Research and Information System for Developing Countries (RIS) warned of susceptibility in consumer goods exports, such as pharmaceuticals, gems and jewellery, and marine products, to US tariffs.
• India's exports in consumer goods to the US amounted to $26.6 billion, representing a significant portion of the bilateral trade valued at $29.5 billion.
• The US accounts for 18% of India's exports, a rise from 10% in 2010–11.
• India's export basket to the US encompasses textiles, electronics, and engineering.

Export Projections

Goyal expressed optimism despite global challenges, projecting exports will exceed $800 billion in FY25, an increase from $778 billion in the previous year.

Challenges for Developing Countries

Goyal noted the strain on developing and least developed countries (LDCs) due to the forex crisis and ongoing impacts from the COVID-19 pandemic.

Electric Vehicles (EVs) in India

Goyal highlighted advancements in the EV sector, stating companies agree no further subsidies are needed post the existing regime.

• EVs are supported under the Production Linked Incentive (PLI) scheme, approved with a budget of 25,938 crore for five years.
• EV sales in 2022 reached approximately 10 lakh units, with Tata Motors leading in passenger EVs.

National Stock Exchange IPO Performance in 2024

The National Stock Exchange (NSE) achieved a significant milestone in the calendar year 2024 (CY24) by hosting the highest number of initial public offerings (IPOs) in Asia.

IPO Statistics

• Total Listings: 268 across both mainboard and SME platform.
• Mainboard Listings: 90.
• SME Platform Listings (NSE's Emerge): 178.
• Total Funds Raised: Rs 1.67 trillion.

Key IPO Highlights

• Largest IPO: Hyundai Motor India's IPO, raising $3.3 billion.
• Global Comparison: The Hyundai IPO was the largest in India and the second-largest globally.

Global IPO Landscape

• Total Global IPOs in CY24: 1,145, compared to 1,271 in the previous year.
• NSE outperformed other top Asian exchanges in IPO numbers, including Japan Exchange Group, Hong Kong Stock Exchange, and Shanghai Stock Exchange.

International Fundraising Figures

• Nasdaq: $16.5 billion.
• NYSE: $15.9 billion.
• Hong Kong Stock Exchange: $10.4 billion.
• Shanghai Stock Exchange: $8.8 billion.

Decline in Manufacturing Productivity

The manufacturing sector has witnessed a decline in productivity as indicated by the fall in Gross Value Added (GVA).

• GVA per establishment decreased by 6.7% in 2023-24 compared to 2022-23.
• GVA per worker fell by 4.2% over the same period.

This decline demonstrates reduced productivity at both organizational and individual levels, based on the Annual Survey of Unincorporated Sector (ASUSE).

Comparative Analysis with Previous Years

Despite the recent decline, a long-term comparison shows a significant rise in manufacturing productivity.

• Compared to 2015-16, GVA per establishment in manufacturing increased by 38.5%.
• GVA per worker rose by 51.7%, the highest among all sectors.

In the services sector, GVA per establishment increased by 24.4% and GVA per worker by 42%.

• In the trade sector, GVA per establishment grew by 40.5% and GVA per worker by 35.4% from 2015-16 to 2023-24.

However, in absolute terms, GVA per establishment and per worker in manufacturing are still lower than in trade and services.

Growth in Emoluments

Manufacturing recorded the highest growth in emoluments per hired worker between 2022-23 and 2023-24.

• There was a 16.1% increase in manufacturing.
• Other services and trade sectors experienced growth rates of 10.4% and 14%, respectively.

Factors Behind Productivity Decline

Pronab Sen, former chief statistician, has attributed the productivity decline in manufacturing to several factors:

• The emergence of new companies which typically have lower initial productivity.
• An increased share of own-account enterprises within the manufacturing sector, which grew to 88.3% in 2023-24 from 85.5% in 2015-16.