Government initiatives towards Indian Logistics IndustryPublished on:2020-03-03

Logistics industry in India is currently experiencing a transformative phase. The government is additionally performing on ways to draw in greater investments in this sector. Grant of infrastructure status to logistics will become a right step in this direction.According to the economic survey 2017-18 presented in the parliament Indian logistics Industry will grow at a CAGR of 10.5% crossing the 200 billion USD mark in coming time. With presently 22 million people employed in the industtry, logistics is expected to expand employment to over 40 million people by 2020. With such a bright future, the Indian logistics sector has become the new sensation that encouragedgovernment to have dedicatedIT backbone for this industry. Even the import-export systems are now upgraded which is reducing the cargo release time to only 2 or 3 days. Under the central government’s Make in India initiative, the expanding manufacturing base, the entry of multinational players in the logistics industry, alongside the introduction of the Goods and Services Tax (GST), and emerging avenues like e-commerce and logistics parks infrastructure are changing the course and dynamics of the industry. The Central Board of Indirect Taxes and Customs (CBIC) under the Ministry of Finance has introduced new provision under CSB IV and CSB V of the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010 providing people benefit of 100% GST refunds in the logistics services. Customers can easily move their shipments with minimum paperwork, faster delivery, and customs clearances with the new amended policyby the government. Moreover, government has included this sector within the Harmonised Master List of Infrastructure Subsector. Inclusion of logistics sector within the Harmonised Master List of Infrastructure Subsector will benefit the world in many ways. It will facilitate the credit flow into this sector with longer tenures and reasonable interest rates. Giving the infrastructure status to this sector will simplify the process of approval for construction of multi modal logistics facilities which includes both storage and transport infrastructure. It will also encourage market accountability through regulatory authority and will attract investments from debt and pension funds into recognised projects. ( Apart from this, to promote the growth of logistics sectors many start-ups and established enterprises have entered the market with the latest technology, quality warehousing, and functional transport facility to provide world-class services in the Indian market. The currententries of international logistics players have also ensured the boost of the Indian logistics industry. This will be a sight to behold the fantastic rising of logistics industry in coming years, especially marking 2020.