Businesses in India have delayed in their realization of the importance of warehousing and logistics development. While corporates have finally woken up to the fact that those warehouses deliver a competitive advantage to the supply chain, the real credit must be given to the government, whose initiatives will soon provide immense potential to being logistics to the center of all business activities.
Below is a list of government initiatives that will boost the Warehousing Market in India
Below is a list of government initiatives that will boost the Warehousing Market in India
1. Big Thrust on Highway Build-Up: in the first decade of this century, the highways and infrastructure sector was focussed on majorly. Good highways are the backbone to the goods transportation, and many schemes later, the major problem of connectivity has improved, if not world class. Truck turnaround time has improved, transit times has reduced do is the vehicle down times.
2. Goods and Service Tax (GST): Besides its advantage in the tax point of view, the logistics and warehousing sector to has benefited from the GST implementation. Post GST implementation, the determining factors of planning logistics is demand and supply, near-to-customer, transportation costs, sourcing and inventory costs. This will lead to a consolidation of transportation costs and warehousing location and impact the trends of commercial vehicle classes.
3. Make in India initiative: the shift of India from being a largely agricultural economy to a service based economy, acted as a missed opportunity for the warehousing sector, as the manufacturing industry got bypassed. With attention being redirected to manufacturing, India will be investing billions in the logistics sector as 20 out of the 25 sectors in the make in India initiative has a high dependence on warehouses and logistics.
2. Goods and Service Tax (GST): Besides its advantage in the tax point of view, the logistics and warehousing sector to has benefited from the GST implementation. Post GST implementation, the determining factors of planning logistics is demand and supply, near-to-customer, transportation costs, sourcing and inventory costs. This will lead to a consolidation of transportation costs and warehousing location and impact the trends of commercial vehicle classes.
3. Make in India initiative: the shift of India from being a largely agricultural economy to a service based economy, acted as a missed opportunity for the warehousing sector, as the manufacturing industry got bypassed. With attention being redirected to manufacturing, India will be investing billions in the logistics sector as 20 out of the 25 sectors in the make in India initiative has a high dependence on warehouses and logistics.
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By far, these government promoted initiatives have potentially redefined the warehousing market in India. Global investors have realized the merit in investing in Indian businesses and logistic networks.
By far, these government promoted initiatives have potentially redefined the warehousing market in India. Global investors have realized the merit in investing in Indian businesses and logistic networks.
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