India’s transportation and logistics sector is at an inflection point. By several estimates, this industry is expected to double to a $300 billion market in the next five years. India’s ecommerce boom coupled with a host of other Government of India (GOI) initiatives are additional catalysts. However, India’s logistics industry is dominated by the informal (“unorganized”) sector, accounting for 80 percent of its total logistics market. In other words, this sector is fragmented and inefficient, thereby performing below its potential. The GOI estimates that improvements in infrastructure and connectivity could reduce time to export by 5 days, with savings of $1 billion per annum to the Indian economy. Moreover, the industry’s transformation from informal to the formal (“organized”) sector will demand a similar transformation in supply chain performance. Gradual reforms to the supply chain will not only ease this transition, but also transform the speed and efficiency of trade and position India as a regional logistics hub.
The USIBC Supply Chain Logistics Committee engages with GOI officials on the most instrumental these policy changes, including efficient implementation of the Goods and Services Tax (GST), impetus from “Make in India,” and India’s rise on the World Bank’s Logistics Performance Index.
Relating to Goods & Services Tax (GST)
Trade Facilitation Agreement
Please contact Jasjit Singh for more information.
Sandip Samaddar is Head of Policy & Strategic Engagements for the USIBC GLP India team. In this role, he assists companies in understanding government policies and cross sectoral issues impacting their business. He works on strategic engagements and thought leadership projects, as well as engaging with the Government of India and state-level governments to advise various ministries on impediments to trade and investment.
Prior to USIBC GPL, Samaddar was Director (Americas) and head of the US/Canada, Latin America and Caribbean & Israel Division at the Federation of Indian Chambers of Commerce and Industry (FICCI), where he focused on leveraging FICCI’s overall presence in North and Latin America. He has previously worked as an independent trade consultant and entrepreneur, as well as a trade advisor with the German Technical Cooperation (GIZ) Agency to complete a specialized project – the Indo-German Export Project (IGEP).
Please contact Sandip Samaddar for more information.