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
Mancini studied at the University of Mary Washington in Fredericksburg, VA where he graduated in 2004 with a bachelor’s degree in History.
He can be reached at Nmancini@usibc.com.