Exhibit 3: Binary questions framework

Objective approach based binary questions for State/UT responses

Institutional Policy Regulatory & Operational

► Appointment of Nodal Officer ► Creation of State Logistics ► Single window mechanism for
► Creation of State Logistics Policy, Logistics Park Policy, approvals, Deemed CLU
Cell, State Logistics Co- State Logistics Master Plan. approvals
ordination Committee, City ► Grant of Industry/priority ► Enforcement of CMVR-2014
Logistics Coordination status, tax breaks & rules, Identifying choke-
Committee incentives, dedicated funding points, enabling first/last mile
for sector. connectivity to terminals.
► Skilling policy in logistics ► Grievance redressal
► Policy on Environmen friendly mechanism, Smart
logistics, dedicated parking Enforcement for trucking.
space

Part II – secondary data sets: The Objective logistics infrastructure and services and facilities
survey also included 27 questions on data have been clubbed together as a single indicator;
variables of logistics ease at the State/UT level, TIES Outlay and Range Scaled EoDB Ranks
covering availability of logistics infrastructure, variables both have been treated as an individual
services, and facilities across all the States. indicator; two data variables have been used as
Limited response on the data variables were normalizing parameters; and the remaining four
received from the States/UTs. In order to maintain variables have not been used owing to data not
uniformity, data has been collated from the being available. Overall, combining 17 perception
repository of different Central Ministries and indicators and 4 objective indicators, a total of 21
Government organizations. Out of these 27 indicators have been used for Statistical analysis
questions, eleven data variables on availability of which is represented in the exhibit 4.

Exhibit 4: List of 27 secondary data Variables

Sr. No. Variables Year Source

Used for statistical analysis
Total Length of State
1
Highways
Total Length of District Replaced with proxy
2 variable - State wise
Roads 2018-19,
Capital Outlay on States/ UTs budget
Total Length of Urban 2019-20,
3 Roads and Bridges data
Roads 2020-21
Average of (2018-19,
4 Total Length of Rural Roads 2019-20, 2020-21)
Total Length of Village
5
Roads
Total no. of registered Goods Commercial Vehicles MoRTH
6 2020-21
(GCVs) (VAAHAN data)
7 No. of CFSs 2018 IMC List
8 No. of ICDs 2018 IMC List
9 No. of PFTs 2021 FOIS
10 No. of Railway Good sheds 2021 FOIS

Page 21 LEADS 2021: Logistics Ease Across Different States

 Sr. No. Variables Year Source
11 Capacity of Air cargo terminals / AFSs (MT) 2019-20 MoCA
12 Capacity of cold storages (MT) 2019-20 MoCAF&PD
13 Capacity of warehouses (MT) 2019-20 WDRA
14 Total number of training centres for logistics 2019-20 MoSDE
15 Number of individuals, trained in logistics training 2019-20 MoSDE
Replaced with proxy
variable - Subsidy data 2017-18,
Amount of subsidy from TIES, State wise 2018-19,
16 MoCI
disbursed during the year average of (2017-18, 2019-20,
2018-19, 2019-20, 2020-21
2020-21)
DPIIT - Business
17 Ease of Doing Business (EoDB) 2019-20
Reform Action Plan
Used as normalizing parameter
1 Gross State Value Added (GSVA) 2019-20 MOSPI
FRI Dehradun
2 Total geographical area of the State/UT 2020-21
website
Used for States’ analysis/ insights
Number of road accidents during the year of Goods
1 2019-20 MoRTH
Commercial Vehicles
MoRTH
2 Total no. of registered drivers of GCVs 2020-21
(SARATHI data)
3 Traffic and capacity of Port terminals 2019-20 IPA
FRI Dehradun
4 Total forest cover of the State/UT 2019-20
website
Note: The four parameters viz. amount of subsidies utilized during the year, number of business applications received during the
year, amount invested by the State government during the year and total hilly area of the State/UT, have not been used in the
analysis due to unavailability of data.

In line with the idea of introducing objectivity to The latest available number/capacity of cold
the index, proxy variables were utilised in case the storage, general warehouse number and available
direct, quantifiable measurements were not capacity (as available with Warehouse
available for the 27 objective parameters. For Development and Regulatory Authority) has been
instance, on the availability of road infrastructure used. States do not maintain logistics sector-
(State Highway/District/Urban/Rural/Village), the specific subsidies and investment-related
available data was dated and could not be utilised. information as logistics is a support service for
However, it has been found that total CAPEX on Industries. EoDB (Ease of Doing Business)
roads and bridges done by States/UTs is a good rankings have been retained as a parameter.
proxy measure of Infrastructure creation and GSVA (Gross State Value Added) and geographical
hence the availability of the road infrastructure. areas have been used as normalising factors. This
On the terminal infrastructure availability front, a ensures fair comparison across States/UTs.
number of CFS/ICD/PFT/Railway goods sheds
As a result of the above exercise, 13 variables
have been used. There was no ready and verifiable
were amalgamed into three parameters (listed
repository of the capacity of terminals of both
below) based on following methodology:
public and private available across the States.
Hence the number of terminals has been used to ► Assessment of variables of logistics ease: 11
capture the availability of infrastructure across objective variables were used for statistical
the States. analysis and two other variables out of the 27
were used as normalising parameters, namely
– Gross State Value Addition (GSVA) for

Page 22
LEADS 2021: Logistics Ease Across Different States
 Industry and Agriculture, State's Geographical States. This parameter was also considered as
Area. Annexure 3 illustrates the usage of one of the objective variables included in the
parameters and its normalisation factor. The Operating and Regulatory Environment. An
normalisation factors were finalised with the average of the subsidy across multiple years
expert committee. After normalisation, a total was calculated. Class intervals were calculated
score was generated, which was categorised based on the average amount of subsidy for
using a class interval of 1-5. This objective the States. This objective variable was named
score was considered a measure of the quality as “TIES Outlay”.
of infrastructure data to be included in the
Overall, combining 17 perception indicators and 4
Infrastructure construct and was named as
objective indicators, a total of 21 indicators have
“Assessment of variables of logistics ease”.
been used for Statistical analysis.
► Range Scaled Ease of Doing Business Index
LEADS 2021 continues to remain predominantly a
(EoDB) Ranks: EoDB index for individual
perception-based Index on which States/UTs are
States was included in the overall model. This
ranked, despite the introduction of objective
Index is meant to measure regulations directly
parameters. Beginnings made in the introduction
affecting businesses. The rankings of the
of Objective parameters has been encouraging and
States were categorised into separate class
it is hoped that more of them would progressively
intervals before including them in the model.
be used in subsequent LEADS exercise. Much will
This objective variable was named “Range
depend on better quality consistent and
Scaled EoDB Ranks” and was included in the
comprehensive data points being available in the
Operating and Regulatory Environment.
future which would be amenable to normalization
► Trade Infrastructure Export Subsidy (TIES) across State/UTs for effective comparison.
Outlay: TIES – the Government of India Perception based indices are generally universally
launched Trade TIES scheme w.e.f. FY 2017 - used for such rankings. And yet, perception basis
18 to assist Central and State Government will always have its weaknesses in respect of lack
agencies for creation of appropriate of evidence, recent event bias and the general
infrastructure for growth of exports from the subjectivity of opinions.

Survey Instrument

Discussions were held with experts to design the testing sessions with actual stakeholders from the
perception and objective survey instruments. The logistics sector to understand their perspectives.
design of the survey instrument is one of the After multiple rounds of iterations and
critical aspects of successful capture of modifications, the survey instrument was
respondents' perceptions accurately. The finalized.
designed survey instruments went through
Perception survey questionnaire is enclosed as
multiple iterations to make them accurate,
Annexure 1 to this report. Objective survey is
pinpointed, and comprehensive so as to elicit a
enclosed as Annexure 2 to this report.
proper response from the stakeholders. The
survey instruments were then subjected to pilot

Database of respondents

The respondent set included the following Warehouse Operators, Container Freight
categories of logistics industry stakeholders: Station, Inland Container Depot
► Transport Service Provider - Road Operators, ► Logistics Service Provider - Freight
Rail Operators, Container Train Operators, Forwarder, Express Carrier, Air Cargo Agent,
Shipping Lines and Airline Operators. Multimodal Transport Operator
► Terminal Infrastructure Service Provider - ► Trader/Shipper – End-users of Logistics
Port Operators, Air Cargo Terminal Operators, services both in EXIM and Domestic segments

Page 23 LEADS 2021: Logistics Ease Across Different States

Exhibit 5: Stakeholder categories for LEADS survey

Transport Service
Provider 1 2 Trader/Shipper

4 3
Terminal
Logistics Services
Infrastructure
Provider
Service Provider

Sampling

The next step was to arrive at the right sample

size, across States and stakeholder. Considering
that the sampling frame was segregated as per
State and different stakeholder groups / sub-
groups, the sample size needed to be customised. N: Population Size
The Cochran’s formula 10given here was used to Z: Critical Value of desired Confidence Level (min: 90%, max:
99%)
calculate sample sizes for each State's stratum
P: Population proportion with homogeneous characteristics
(category of stakeholders). (90%)
d: Margin of error (Sampling error

Data Collection

To collate a population set of the above means including web enabled survey tool,
categories, industry and trade associations and telephonic discussions, virtual meetings and in-
chambers of commerce were approached. person meetings. The exhibit 6 below represents
Respondents were contacted through multiple the mode of capturing responses.

10
Cochran’s formula for sample size determination is an accepted (Cochran, W. G, “Sampling Techniques”, John Wiley and Sons, 3rd
practice in the domain of statistics for small or large population sizes Edition, 1991)

Page 24
LEADS 2021: Logistics Ease Across Different States
Exhibit 6: Survey administration tools

1 2 3 4

Web enabled Telephonic Video Face to face

portals and discussion conferencing meetings
emails

A total of 3,771 responses from 1,405 four categories of respondents identified earlier.
respondents were collected as part of the LEADS Distribution of responses is presented in the
2021 exercise. Data was collected from all the exhibit 7 below:

Exhibit 7: Distribution of responses captured from the respondents

33% Trader / Shipper

40%
Transport Service Provider

Terminal Infrastructure Service Provider

11% Logistics Service Provider
16%

Data Analysis

For all of 3,771 responses, data was cleaned, and quality of infrastructure data to be included in the
only valid responses totalling 3,363 were used for Infrastructure construct.
analysis. Similar methodology for data cleaning
EoDB index for individual States was included in
was broadly adopted from the earlier studies,
the overall model. This Index is meant to measure
along with the use of Multiple Imputation Chained
regulations directly affecting businesses. The
Equation (MICE) packages in R.
rankings of the States were categorised into
Each of the 11 objective parameters used for separate class intervals before including them in
statistical analysis was normalised either using the model. This objective variable was included in
Gross State Value Addition (GSVA) for Industry the Operating and Regulatory Environment.
and Agriculture or the State's Geographical Area.
TIES outlay was also considered one of the
Annexure 3 illustrates the usage of parameters
objective variables included in the Operating and
and its normalisation factor. After normalisation,
Regulatory Environment. An average of the
a total score was generated, which was
subsidy across multiple years was calculated.
categorised using a class interval of 1-5. This
Class intervals were calculated based on the
objective score was considered a measure of the
average amount of subsidy for the State/UTs.

Page 25 LEADS 2021: Logistics Ease Across Different States