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India’s state tariffs and taxes have long been a headache for freight in the country, causing delays and higher costs for shippers. Introducing a nationwide goods and services tax has been a priority for Narendra Modi’s government, and it is due to be rolled out in April. But not only has it been diluted, but India’s states will continue to man their borders, and thus continue to delay freight traffic. This article explains the problems, and reveals why one manufacturer prefers to send his goods to Sri Lanka, raising costs by 20%, to avoid long delays. India has more than 650 interstate checkpoints, which contribute to logistics costs being 13% of GDP.

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