Parliament Question: Performance of Karnataka under Logistics Ease Across Different States

GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE RAJYA SABHA UNSTARRED QUESTION NO. 3237. TO BE ANSWERED ON FRIDAY, THE 20TH MARCH, 2026. PERFORMANCE OF KARNATAKA UNDER LOGISTICS EASE ACROSS DIFFERENT STATES 3237. SHRI IRANNA KADADI: Will the Minister of Commerce and Industry be pleased to state: (a) the performance of Karnataka in the latest Logistics Ease Across Different States (LEADS) ranking; (b) the details of the logistics infrastructure gaps identified in the North Karnataka region; (c) the measures taken to improve the first-mile and last-mile connectivity for the industrial estates of Belagavi; (d) the status of the development of warehousing and cold chain logistics in the district; and (e) the Government's plan to reduce the logistics cost for the MSME sector? ANSWER THE MINISTER OF STATE IN THE MIN ISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA) (a): In the latest edition, that is the 6th edition of Logistics Ease Across Different States (LEADS) 2024, Karnataka retained its position as ‘Achiever’, which was same as in the previous year. As per LEADS-2024, Karnataka has undertaken steps to reform its logistics ecosystem by adopting the State Logistics Action Plan 2022. Key efforts include providing Industry Status to the warehousing and logistics sectors to enhance trade competitiveness, developing Multi-Modal Logistics Parks (MMLPs) & Inland Waterways, and strengthening the State’s single-window system to enable digitalisation of end-to-end application and approval process. Additionally, several sustainable practices are also being promoted, such as green logistics and EV adoption. (b): Limited availability of Free Trade Warehousing Zone (FTWZ) and insufficient First and Last Mile Connectivity at Karwar Port, have been identified as infrastructure challenges in the northern part of the State as per the LEADS-2024 Report.(c): While evaluating the projects through the Network Planning Group (NPG) mechanism under PM GatiShakti, first-mile and last-mile connectivity are stressed upon through consultation with all relevant stakeholders and as part of the evaluation. Two(02) projects – ‘Belagavi Ring Road NH 848R’ and ‘Belgaum- Hungund-Raichur Section of NH 748A’, in the Belagavi District have been evaluated through the NPG mechanism. (d): Central Warehousing Corporation (CWC) is operating 11 numbers of warehouses with a storage capacity of 3.26 Lakh MT in North Karnataka. Out of which, 02 warehouses with a storage capacity of 24,998 MT, are operated in Belagavi District. Ministry of Food Processing Industries (MoFPI) has approved 3 projects in Belagavi District. under Integrated Cold Chain and Value Addition Infrastructure Scheme with total preservation and processing capacity of 0.43 LMT/Annum. (e): As per the recently conducted assessment of Logistics costs in India, the overall logistics costs is about 8% of the GDP, which is comparable to the logistics costs in advance economies. Such reduction in logistics costs has been brought about in the industries, including MSME, through implementation of PM GatiShakti initiatives and the National Logistics Policy. ********