"Logistics parks will act as freight aggregation and distribution hubs and will enable long haul freight movement between hubs on larger sized trucks, rail and waterways. It will reduce freight transportation costs," said Road Transport and Highways Minister, Nitin Gadkari, in an interaction with a leading news agency.
With the implementation of the Goods and Sector Tax (GST), India has become a single market with the destination-based tax system. GST has a significant impact on the manufacturing chain, supply chain, and retail chain. A strategically placed warehouse improves and facilitates proper supply chain management. It is expected that the logistics cost in the country will go down by nearly 20%. Freight transportation movement on the highways network would increase and unlike other modes of transport, roads address the demand for goods in cities as well as remote areas of the country, thus this investment will greatly benefit the logistics sector.
Logistic stocks on the bourses like Blue Dart Express, VRL Logistics, Sical Logistics, Gateway Distriparks and Allcargo Logistics are likely to gain in the near-future due to various factors including government’s support and GST regime.
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