India has made an impressive leap in its logistics performance in the last two years. The latest Logistics Performance Index (LPI) report released by the World Bank is a testament to that.

India improved its ranking from 54 in 2014 to 35 this year (2016). The LPI report is published every two years. This time, it compared 160 countries.

LPI is an interactive benchmarking tool created to help countries identify the challenges and opportunities they face in their performance on trade logistics and what they can do to improve their performance.

World Bank surveys operators (global freight forwarders and express carriers) working on the ground and asks them the logistics-friendliness of the countries in which they operate and those with which they trade. Their feedback in addition to quantitative data on the performance of key components of the logistics chain help determine the rankings in the LPI index.

The World Bank report notes that the capacity of developing countries to efficiently move goods and connect manufacturers and consumers with international markets is improving; however, it also says that much more needs to be done to close the performance gap in supply chains in these countries.

India’s score went up from 3.08 to 3.42. Germany tops the rankings with a score of 4.23. It is followed by Luxembourg, Sweden, Netherlands and Singapore. The US, with a score of 3.99, stands at 10th. China is at 27th with a score of 3.66.

If India keeps the same pace of improvement, it should overtake China by 2018.