Budget should focus on making Indian logistics sector globally competitive

It is broadly estimated that the Indian logistics market will be worth $ 307 billion by 2020. However, increasing overheads like inventory holding costs and transaction costs and the fact that India spends around 14-15 percent of its gross domestic product on logistics and transportation as compared to less than 8-9 percent costs incurred by other developing countries have ensured that domestic logistics players do not have a competitive edge over their global peers. A fragmented and under-developed framework has bogged the potencies of the sector. Inferior physical and communication infrastructure has hampered the operational bandwidth of logistics service providers