India's logistics gets 'infrastructure status' to boost investment

© Alexey Novikov

The Indian government has given ‘infrastructure status’ to the logistics industry, a move which will help attract investment to sectors such as cold chain and warehousing. It has been on the cards since as long ago as February 2016, when Dr  Renu Singh Parmar, senior adviser for India’s ministry of civil aviation, explained that the status, when introduced, would give companies such as those co-located at airports up to a 10-year tax holiday. It would also help the logistics sector get credit at competitive rates and on a long-term basis. Logistics costs in India comprise about 13-14% of GDP – a figure just 7-8% in some developed countries, and has hampered India’s trade.