The logistics sector generates mass employment and is a key revenue earner for the government. In order to improve the competencies of the logistics sector, the Goods and Services Tax (GST) should be implemented without further delay, which could result in potential savings of around $200 billion and lead to streamlining of the taxation structure and reduce inventory maintenance costs.
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Multimodal logistics parks to come up
The Ministry of Road Transport and Highways has set up a Logistics Efficiency Enhancement Programme, under which it is developing multimodal logistics parks across 11 states in the country.
Indian 3PL market is set to grow tremendously over next 5-7 years
The next decade or so will see India becoming efficient in managing its logistics cost as the need for world class logistics increases with the expected growth in the economy