India climbs to No. 2 in 2017 Agility Emerging Markets Logistics Index

Jan 24, 2017: India’s growing economy and willingness to adopt new reforms has made it the favorite of global logistics executives, according to the 2017 Agility Emerging Markets Logistics Index.

In a closely watched survey and ranking of 50 leading emerging markets countries, supply chain executives picked India as the emerging market with the most logistics potential and the country where their companies were most likely to invest.

India climbed to No. 2 in the 2017 Index, switching spots with United Arab Emirates. China, the world’s second-largest economy, again topped the rankings.

The survey of more than 800 logistics executives offers an annual snapshot of industry sentiment to go with the Index rankings of the world’s 50 leading emerging markets by size, business conditions, and infrastructure and transport connections.

“It’s remarkable to see a country this size growing at better than 7 per cent a year. Goods & Services Tax (GST) reform has the potential to be a game-changer,” said Detlev Janik, South Asia CEO of Agility Global Integrated Logistics, based in Mumbai. “It’s going to spur companies in India to strengthen their systems and shift their efforts from minimizing their taxes to maximizing their business opportunities.”

Twenty-three percent of survey respondents said passage of the GST makes their companies more likely to invest in India.

Janik said short-term optimism about India has been tempered somewhat by the government’s surprise decision in late 2016 to remove large bank notes from circulation. “That will encourage broader adaptation of credit cards, mobile payment and other cashless transactions, but the immediate effect has been jarring for individuals and companies that were caught off guard and aren’t ready to go cashless,” he said.