Logistics Liberation in India

Logistics operators in India are expecting great things of the national sales tax which the Government is planning to introduce next year.  The current tax system is very complicated, with a large variety of different taxes and duties chargeable on goods moving between the different states in India.  This is a barrier to trade, and to foreign companies who wish to establish businesses in the country.  Industry commentators are confident that the removal of these barriers and their replacement with one sales tax for the whole country, will cause a huge increase in demand for freight.  Foreign companies will be encouraged to invest, as they will be able to set up only three or four logistics distribution centres to serve the whole country, and the logistics market will be able to consolidate.  It is estimated that exports will increase by 10 – 14%.