The Indian government announced infrastructure status for the logistics sector, which gives the sector access to larger funds for longer periods of time. Firms such as GATI, Gateway Distriparks and VRL Logistics gain from the move. 

The government noted that logistics costs in India are very high compared to the developed world, and the Ministry of Finance said that the growth of this sector was essential to aid both manufacturing, and the creation of more jobs. The policy change covers logistics parks, cold storage and warehousing facilities.

Logistics costs of exports are disproportionately high in the country. Studies note that in India, 14% of the value of goods are due to logistics costs, while in other countries this accounts for 5-8%. This makes Indian goods less competitive in global markets even when other input costs are low. 

Photo: Erwan Hesry