IMPACT OF GST ON TRANSPORT AND LOGISTICS INDUSTRY IN INDIA

Abstract

Logistics sector plays an important role in economic development of any nation. An efficient logistics sector is necessary for high pace industrialization of any economy. In an emerging economy like India, this sector even commands higher importance so that it does not end being bottle-neck in the process of development. Traditionally, logistics industry of India has been seen as slow and expensive. However, it has begun to command ample attention from industry as well academia in recent times. Currently, logistics industry in India is evolving rapidly and it is the interplay of infrastructure, technology and new types of service providers that will define whether the industry is able to help its customers reduce their logistics costs and provide effective services (which are also growing). Changing government policies on taxation and regulation of service providers are going to play an important role in this process. Coordination across various government agencies requires approval from multiple ministries and is a road block for multi modal transport in India. At the firm level, the logistics focus is moving towards reducing cycle times in order to add value to their customers. Consequently, better tools and strategies are being sought by firms in order to enhance their decision making. In this paper, we provide a perspective on these issues, outline some of the key challenges with the help of secondary information, and describe some interesting initiatives that some are required to compete through excellence in managing their logistics.