Logistic Park Developer In India

India is burdened with high logistics costs which account for about 13% of the value of goods sold in the economy compared with 8% in major economies. Along with its efforts including the 'Make In India ‘ program and improvement in infrastructure , Government of India has made number of decisions aiming at transforming the country's logistics sector . Multi modal logisticsparks are a key policy initiative of the Government of India to improve the country’s s logistics sector by lowering overall freights costs, reducing vehicular pollution and congestion and cutting warehousing costs. The benefits that these logistic park developers in India is going to bring to the nation are –

• It will enable an effective transportation and timely movement of goods from one place to another.
• Reduce cost of production by minimizing the need for large inventors.
• Less capital required for warehouses.
• Value-added services such as customs clearance with bonded storage yards, quarantine zones, testing facilities, and warehousing management services are provided.

As Arun Jaitley said,”An effective multi modal logistics and transport sector will make our economy more competitive “. Industry is adopting new technologies to provide faster, cheaper, more reliable and sustainable delivery model. All mediums of logistics services like air transport, land transport, rail transport, water transport are going through a time of rapid and unrivalled transformation. It is hard to see how production structure can be improved radically unless India builds new logistics network.

Keeping pace with India’s rapid economic growth is the expansion of the country’s logistics sector. The movement of freight in the country in 2015 has nearly become double of that in 2008. Government expects physical process to transport communities in the country to continue its growth trajectory, with expected annual growth of 8%–10% over the next 10 years. According to a study commissioned by MORTH, the logistics sector as a whole is poised to expand at roughly 1.2 times the rate of India’s gross domestic product growth through 203. By this time it is expected to generate $360 billion in value added. The Logistics Performance Index (LPI), a ranking published by the World Bank to measure the logistics performance of countries, India managed to improve its performance in 2016. India’s LPI ranking rose to 35th in 2016, up from 46th in 2012. However, India's rank still lags behind some of its economic peers, including other Asian countries. The best logistics performer in Asia is Singapore. However, there remains a significant challenge to the development of the sector. Logistics costs are high in India are high relative to costs in developed countries.

Higher logistics costs in India are primarily driven by unfavorable inter-modal mix (60% of freight movement skewed toward road transport despite the lower freight cost of rail transport), Inefficient fleet mix (characterized by smaller, inefficient trucks), and underdeveloped material handling infrastructure (characterized by a fragmented industry consisting of small, unorganized warehouses with limited mechanism). Another major cause of underdeveloped road infrastructure (with a limited presence of national highways) is the lack of a national logistics policy, institutional and regulatory bottlenecks.