Andhra Pradesh is ranked ninth in theLeads2021 (LogisticsEase Across Different States) index of the Union ministry of commerce and . This is a drop of six positions from the third rank in Leads 2019. Minister of commerce and industry, consumer affairs, food and public distribution and textiles, Piyush Goyal, released the report in New Delhi.
As per the report, Andhra Pradesh registered its biggest fall in ranking on account of issues across Infrastructure, Services and the regulatory Environment. The state has scored low in indicators of quality of infrastructure.
Interactions with stakeholders have also brought to the fore infrastructure-related challenges in the state. For instance, condition of the road stretch from Vijayawada to Visakhapatnam via Rajahmundry and the stretch from Visakhapatnam port to warehouses along the national highway need attention.
The shortage of Warehousing facilities, specifically in Vijayawada, Kakinada and in parts of Nellore and the general lack of regulation for setting up a warehousing facility in the state are some other negative factors highlighted in industry interactions. A similar sentiment is also reflected in the below Average scores of the state in the extent of facilitation and ease of obtaining approvals.
As per the report, stakeholders have pointed out that high toll costs and additional levy on diesel are two Elements that have resulted in high cost of Logistics in the state. The stakeholder perception score has hence been low on related indicators of reasonableness of road freight rates and prices of terminal services.