- Indian logistics market stands at USD 160 Bn.
- It employs more than 22 Mn people.
2Grant of Infrastructure Status
- Logistics sector was granted Infrastructure Status in 2017.
- This permits the sector to:
- Avail infrastructure lending at easier terms with enhanced limits.
- Access to larger amount of funds as External Commercial Borrowings (ECB).
- Access to longer tenor funds from insurance companies and pension funds.
- Eligible to borrow from India Infrastructure Financing Company Limited (IIFCL).
3INCREASED INTEREST FROM INSTITUTIONAL INVESTORS
- Indian warehousing and logistic market received around USO 3.4 billion of institutional capital over the period January 2014 - January 2018.
- Investments into the warehousing sector account for around 26% of the total private equity investments into real estate during January 2014 - January 2018.
4INITI ATIVES TAKEN BY THE GOVERNMENT FOR IMPROVING BUSINESS ENVIRONMENT
- Setting up of a new Logistics Division in the Department of Commerce to coordinate integrated development of the sector by way of policy changes, improvement in existing procedures, identification of bottlenecks and gaps, and introduction of technology-based interventions.
- Extension of industrial licenses for up to 7 years.
- Reduction in documents required for import and export from 11 to 3.
- Implementation ofE-Governance and Insolvency Bankruptcy Code, which will aid logistics services providers.