Logistics to grow at 10 percent, GST to benefit organised players: ICRA

July 04, 2017: Domestic ratings agency ICRA in a report said that the logistics sector is likely to grow at 9-10 percent in the medium term on GDP expansion. It also added that the GST era will see benefits accruing to organised players.

"Indian logistics industry is at the cross-roads, poised for growth on the back of the economic recovery and changing industry dynamics," ICRA said.

According to the agency, the organised players will benefit because under GST, there will be a consolidation of warehousing network, higher degree of tax compliance and creation of level playing field between 'express' and traditional transport services through input tax credit.

There will be a greater focus on multi-modal logistics on the back of increased thrust from the government, it said.

The report also mentions that the railways will benefit from the dedicated freight corridor (DFC) expected to get operationalised in 2019.

"DFCs would be a game changer as it would possibly remove several inefficiencies in freight movement. After many delays, the DFCs are now expected to commence operations from 2019. On both the eastern as well as western corridors, Railways will stand to gain traction from road segment."