ON LOGISTICS SECTOR
The new government has embraced several initiatives that have furthered the growth of the Indian economy and cemented the path for steady developments. With the country at the cusp of gaining recognition as the fastest growing major economy of the world, there are optimistic expectations from the Union Budget 2016. The India Shipping Minister has stated the significance of laying emphasis on the maritime sector to accelerate the booming of the Indian economy. He has laurelled this sector as the most economical route for bulk transport. The logistics industry is hopeful to see a decline in the prevailing Indian logistics costs, which is about 13% of the GDP. This will render the necessary thrust to ease the cost of logistics and successfully increase Indian exports by providing cutting edge to our exports in the global market. It will reduce the landed cost of imports thereby giving a further thrust to the economy. While the ‘Make in India’ campaign is reaching scaling heights, it is the need of the hour to generate more employment opportunities for the Indian youth. Demographic dividend will turn into demographic disaster unless we can provide jobs. The generation of additional job prospects in the manufacturing sector will be catalysed by a boost in the logistics industry. The logistics industry is hopeful of being acknowledged as a distinct industry and receiving infrastructural status as a whole. It is crucial to remove the discrimination between the abatements on the different modes of transport. The Indian tonnage tax regime should also be further streamlined to be in sync with tonnage tax regime prevailing in other parts of the globe. The implementation of GST could also act as a major facilitator for making the logistics sector seamless across the country.