How GST Will Impact The Logistic Industry In India

The logistic industry in india was estimated to be around 130 billion in the year 2013. It has grown exponentially in the last few years . The growth of the industry can help india to achieve the goal of becoming manufacturing hub.

The logistic companies in india have evolved from being first party logistic providers to being the integrated fourth party logistic provider . The fourth party logistic providers are those companies that have entire chain of logistics from transportations , warehousing to distribution , consultancy in management and having advanced supply chain facilities on the ground . The government have taken steps to help companies release their potential . The latest step of the government to implement the GST , goods and service tax , is to make whole country a major single market by eliminating multi layered tax structure . The aim is to unshackle india from bureaucratic web and unleash the power of individuals and corporates to generate economic activities .

The proper implementation of the goods and service tax will reduce the transportations costs . Increase warehouse capacities and enhance supply chain decisions . All these steps will increase business for logistic companies to make them catalyst in development of india .

At present the all state border checkpoints take lot of time in transportations and reduce the supply supply cycle of trucks . The material checking and tax compliances often are done by illegal transfer of money to the inspectors at the checkpoints . The reduction in International Parcel Service In Kandivali number of checkpoints and less tax will smoothen the flow of goods and parcels within the country . This change will make logistic companies to delivery goods more efficiently and increase the frequency of trucks for more business . The cost of the parcel and packaging will also come down as companies will not have to pay more tax at the several checkpoints .

It is estimated that reduction in delivery time will bring down the distribution cost by at least 10 – 15 percent , thereby reducing the final price of the good .

If petroleum is also brought under the GST regime , then logistic companies will have a strong reason to welcome and celebrate the GST move . But there are reports that petroleum will be exempted till some time to the date announced by the GST council .

The draft and rules of the GST wil actually decide the impact on the supply of goods and services . However , the implementaion International Parcel Service In Borivali of new tax regime will create vast space for the growth of logistic companies .

Initiative of government to increase sea borne trade

The ministry of shipping report says that more than 95 percent of Indian trade by volume and 70 percent by value is carried by ships . India has 12 major ports and 187 non major ports on both eastern and western side of the coast . The long cost line of more than 7000 miles has given india the status of being the 16 largest maritime country in the world .

To unleash the potential of port and sea borne trade the government of india has initiated the policy of direct foreign investment in the port and harbor infrastructure . The government also has policy of giving 10 year holiday plan to the companies that are willing to invest in the build, operate , and maintain the ports , harbors , inland water ways and inland ports .

The boost investment and development of the country , the government plans to develop 10 coastal economic areas from west coast to east coast to boost the string of ports projects . The government wants to invest at least 10 billion US dollors in the developments of ports in the next five years .

 

Different ports of the country International Parcel Service In Bandra also want to expand and modernize the cargo loading and unloading infrastructure. The ports which are facing major pressure from traffic want to develop new satellite ports so that they traffic can be handles efficiently and load can be reduced at the major ports . The ports also are increasing draft for making it easy for the huge container and cargo ships to come easily inside the port . The development of non major ports will help the country to export and import without putting pressure on the major ports .the development of Delhi Mumbai industrial corridor need major ports with large cargo handlign capability to faster movement of goods and major machinery.

The shipping corporation of india has started the ship purchasing program to boost its fleet that had stagnated due to poor infrastructure of the company . The corporation also wants to purchase the liquified petroleum gas carrier . 

The major companies and corporations Packers And Movers For International In Kandivali in the world engaged in the devrlopent of ports and harbors have shown keen interest in the initiative of the government . The DP world, the forth biggest container port corporation in the world has announced the plans to invest over one billion US dollors in India to increase its business of container port handling .