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Economic Survey says Indian logistics industry has grown at CAGR of 7.8 pc in last five years

Indian logisticsAccording to the Economic Survey 2017-18, presented in Parliament on Monday, the Indian logistics industry, value around $ 160 billion dollars, has grown at a compounded annual growth rate (CAGR) of 7.8 % during last five years. The sector provides employment to more than 22 thousand people. The International Ranking of the Globe Bank’s 2016 Logistics Performance Index shows that Indian hopped to 35th rank from 54th rank in 2014 in terms of overall logistics performance. India has improved its rank in all the six components of the logistics performance index, said a release.

On Ease of Doing Business, the Economic Survey features that Indian has hopped 30 ranks over its past rank of 130 in the Globe Bank’s latest Doing Company Report 2018. Credit rating Company Moody’s Investors Service has also raised India’s ranking from the lowest investment grade of Baa3 to Baa2. This has been made possible due to a host of measures performed by the federal govt, including execution of the Goods and Services Tax (GST), Insolvency and Bankruptcy Code, and statement of bank recapitalisation. Among the number of changes to boost industrial growth include the Make in India program, Start-up India and Intellectual Property Rights policy.

The Economic Survey notes that the International Facilities Outlook predictions around $ 4.5 billion dollars value of investments required by India until 2040 to develop infrastructure to improve economic growth and community well being.

According to the Survey, the federal govt is investing extremely in developing infrastructure to support India’s long-lasting growth. Indian is far ahead than much-emerging economics in terms of providing qualitative transport related infrastructure. The primary agenda for the federal govt has been developing new National Roadways (NHs) and also transforming State Roadways (SHs) into NHs.

The Survey notices that in order to facilitate finalization of late tasks, various steps have been taken for optimizing of land acquisition and environment clearances. The new umbrella program Bharatmala Pariyojana is designed to achieve optimal resource allocation for holistic highway development.

Regarding Railways, the Survey states that during 2017-18 (up to Sept 2017) Indian Railways carried 558.10 thousand loads of revenue-earning shipping visitors, as against 531.23 million tonnes during the corresponding time interval of the year before, showing an increase of 5.06 %. With an emphasis on train infrastructure growth, the pace of commissioning Broad Gauge (BG) lines and finalization of electrification has been accelerated.

In 2017-18 (till Dec 31, 2017), freight visitors managed at Major Slots has been 499.41 million tonnes compared to 481.87 million tonnes managed during the corresponding time interval of 2016-17. Under the Sagarmala Programme, which encourages port-led growth along the Indian coast, 289 tasks value Rs 2.17 lakh crore are under various stages of implementation and development, the Survey adds.