JOIN USIndia can save up to $50 billion if logistics costs are brought down from 14% at present to 9% of the country’s GDP, thereby making domestic goods more competitive in the global markets, said an industry survey.
“With expected inflow of new investments owing to the government’s thrust on promoting the domestic manufacturing sector, India’s cargo and logistics industry is likely to clock a CAGR of about 16% during the course of the next few years,” noted the study on ‘Cargo and logistics industry in India,’ conducted by Assocham and knowledge firm Resurgent India.
“The ‘Make in India’ campaign will see investments connect India to global production networks that would generate new business for logistics in the country, thereby making it an attractive location to do business, as compared with other regions in the world,” it said.
“Growth in the logistics sector would imply improved service delivery and customer satisfaction, thereby leading to growth in exports of Indian goods and potential to create job opportunities,” it said.
However, the government needs to put in place requisite infrastructure to keep pace with development across the world. “This will help in bringing down the costs considerably, boost GDP and generate employment opportunities.”
“Appropriate policy changes and opening up capacity together with increase in speed for transportation of goods and services through various modes, viz., rail, road, water and others, is imperative for the growth of cargo and logistics industry in India,” it said.