Do infrastructure bottlenecks in the country impede growth of the logistics sector?
India’s pace of growth and development is placing extreme pressures on infrastructure, supply chains and logistics capabilities. To raise the bar on service standards, world-class infrastructure is vital. As a result of the underdeveloped trade and logistics infrastructure, the logistics cost of the Indian economy is over 13 per cent of GDP, compared to less than 10 per cent of GDP in Western Europe and North America. In the present scenario, airports are finding it increasingly difficult to cope with rising volumes of air cargo. A significant change and decongestion in this sector would greatly enhance the quality of trade in the express and logistics industry. Additionally, growth is currently hampered due to poor infrastructure in roads (over 70 per cent of domestic freight transportation in India is via roads). The 12 major ports handle volumes higher than their full capacity, resulting in pre-berthing delays and longer ship turn-around time compared to the East Asian counterparts
