Logistics could save $200bn a year with India's GST

© Pjhpix

The proposal by the Indian government to replace myriad state taxes with a nationwide goods and services tax has been lauded as potentially having the same kind of impact as the creation of a common market in Europe – doing away with a whole lot of bureaucracy and inefficiency and allowing economic growth to flourish through lower logistics costs. “For a $2-3trn economy, this could mean a potential $200bn of wasteful inventory spend being available for productive value creation, further propelling the economy’s growth,” one logistics director said. Indian industry has been waiting for this reform for over a decade and it has now finally arrived.