Reducing logistics costs could save India $50 billion
According to a joint study by industry chamber Assocham and Resurgent India, India can save as much as $50 billion if it implements measures to bring its logistics costs down from 14 percent of the country's GDP to 9 percent.
According to the report - Cargo and Logistics Industry in India - the Make in India campaign will connect the sub-continent with global networks and will not only improve the country’s logistics industry but will also make the country a more attractive location to do business in.
In a statement, the Associated Chambers of Commerce and Industry of India (Assocham) said: "India can save up to $50 billion if logistics costs are brought down from 14 percent to nine percent of country's gross domestic product (GDP) thereby making domestic goods more competitive in global markets.
The study said: "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 percent during the course of next few years."
Assocham Secretary General D.S. Rawat said: “Appropriate policy changes and opening up capacity together with increase in speed for transportation of goods and services through various modes, namely rail, road, water and others is imperative for the growth of cargo and logistics industry in India,"
"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."