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India must bet big on logistics

India?s logistics sector is coming of age. With its new found infrastructure status and the GST giving tailwinds, it is all set for transformation. In addition, there is a lot happening in favour of this sector, which has resulted in it being deemed a sunshine industry. During the last two years, India?s position has progressed in the World Bank Logistics Performance Index (LPI), in terms of overall logistics performance from 54 in 2014 to 35 in 2016. The 2017-2018 Economic Survey also paints a promising future for the sector. Industry analysts also endorse such growth trends for logistics?e.g., a recent report by real estate consultancy CBRE predicts a stronger growth for logistics in 2018, owing to leasing activity shooting up to 70%, to reach 17 million sq. ft. It also forecast that demand for warehousing space will reach 20 million sq. ft. in 2018, with both new and existing occupiers expanding their operations. GST, in particular, has given a major fillip to the sector and will expedite faster conversion of informal logistics setups to formal ones. It will also speed up freight movement at interstate borders due to dismantling of check-posts. With the GST e-bill being rolled out from April 1, 2018, the sector will witness further improvements.
Source: Latest News

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