Home / Knowledge / News / Textiles / '$50 bn savings if logistics costs cut to 9% of GDP'
'$50 bn savings if logistics costs cut to 9% of GDP'
02
May '16
India can save up to $50 billion if logistics costs are brought down from 14 per cent to nine per cent of country's gross domestic product (GDP) thereby making domestic goods more competitive in global markets, according to an Assocham-Resurgent India joint study.

“With expected inflow of new investments owing to government's thrust on promoting domestic manufacturing sector, India's cargo and logistics industry is likely to clock a compounded annual growth rate of about 16 per cent during the course of 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 to other regions in the world,” it said.

“Growth in 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,” the study said further.

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 gross domestic product (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,” said D.S. Rawat, Secretary General of Assocham while releasing the study.

“Transportation of bulk commodities through waterways can free up capacity for fast moving goods, besides, setting benchmarks and standards for industry will drive uniformity of warehouses, storage and transport equipment,” Rawat said.

Access to cheap capital should be made available to logistics service providers for investments in infrastructure, enabling them to extend longer credit periods to their clients and supplementing their working capital, the study suggested.

“The government should create a uniform tax structure and do away with multiple checkpoints and documentation requirements which would lead to speedier delivery of cargo,” it said.

The study highlighted that the passage of the Goods and Services Tax (GST) Bill will further improve the logistics sector's performance by bringing down distribution costs by up to 15 per cent. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search