Pirojshaw Sarkari, CEO, Mahindra Logistics has given thumbs up to the
government proposal on infrastructure status to logistics sector on 21st Nov.
The logistics sector is a core industry that deeply influences all economic
activities. The cost of logistics is extremely high in India with some
estimates putting it at about 13 per cent of GDP, which is higher than the US
(9) and Germany (8). Hence, the logistics sector needs improvement
in efficiency, he said. GST is expected to be a major driver for this
improvement. Post GST, the warehouse sizes are expected to increase. In order
to serve these large capacities, higher tonnage trucks will be
required. This would mean new investments. “We believe that the
infrastructure status will reduce the cost of capital in transportation and
warehousing, thereby reducing the cost of logistics.At Mahindra Logistics, we
look forward to the infrastructure status getting implemented, for the industry
to excel in years to come”, he added.