Unlocking the Potential of Freight Logistics in India
New, comprehensive analysis of data on the current routing of goods in India have positioned the country to break through its freight transport gridlocks and logistics inefficiencies. With a growth rate of more than 7 percent since 2014, India is t...
| Main Author: | |
|---|---|
| Format: | Brief |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/229161490902806326/Unlocking-the-potential-of-freight-logistics-in-India http://hdl.handle.net/10986/26361 |
| Summary: | New, comprehensive analysis of data on
the current routing of goods in India have positioned the
country to break through its freight transport gridlocks and
logistics inefficiencies. With a growth rate of more than 7
percent since 2014, India is the fastest growing major
economy in the world. But as a share of its GDP, its
logistics costs for moving freight are as high as 14
percentpercent of GDP, markedly more than the 8–10 percent
for most advanced economies. The gap arises from excess
costs generated by inefficiencies in the transport system,
greater costs of storage and inventory and procedural
delays. Closing that gap would give a major boost to India’s
growth prospects. Studies of logistics improvements in
advanced economies have shown that, with sufficiently
detailed data on freight flows, targeted interventions in
specific corridors andsubsectors can enable transformational
changes in freight logistics performance. Researchersand
logistics experts from the World Bank and South Africa’s
Stellenbosch University have assembled and modeled such data
for India, identifying bottlenecks and opportunities for
morestrategic investment and collocation of activities to
achieve production synergies and lower thecosts of logistics
and trade. |
|---|