Logistics & Supply Chain - #SectorUpdates

Five years after the nation-wide implementation of GST, one can comfortably claim that the nation has truly benefited from ‘One nation one Tax’ policy. According to Cushman & Wakefield’s 2021 Global Manufacturing Risk Index India has replaced the United States as the second-most favorable manufacturing hub. As observed over the past five years the logistics sector has been a major beneficiary of GST. First, seamless transportation reforms have resulted in the faster movement and turnaround of products. It has been observed that a reduction of at least 12 percent to 15 percent in transport time between major cities and in some cases as much as 30 percent to 40 percent. Second, the introduction of the e-way bill has facilitated and streamlined supply chain management for most companies. The success of the ‘Make in India’ initiative, is driving the growth of the manufacturing sector, which contributes around 15 percent to our gross domestic product. It is estimated that for each percentage-point rise in manufacturing sector output, the logistics and supply chain industry has to grow one-and-a half times as much. Having said this, there is a need for complete integration of processes that involve manufacturers, logistics service providers and consumers.

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