Perceptions of Key Logistics Players
D B Gupta
The high logistics costs in India as compared to those in countries that have similar business environments and are going through the same stage of growth is a matter of serious concern for both the country’s manufacturing sector and its comprehensive development as a whole. Several reasons are cited for the high logistics costs in India. These include an unfavourable policy regime, lack of a multimodal transport system and the consequent heavy reliance on road transport, fragmented storage infrastructure, the presence of multiple stakeholders in the entire transport and storage value chain, poor quality of road and port infrastructure, and the absence of technology intervention in storage/transportation and distribution activities. These high logistics costs inevitably have an adverse effect on the country’s competiveness in the globalised world.
National Growth and Macroeconomic Centre