Suresh Bansal, Director, DTDC
Logistics sector has shown a growth of 12-15 per cent in 2013-14. In the coming fiscal, due to general elections we don't expect much from the government, although the wish lists are building up. We expect the end of 2014 or beginning of 2015 a far better year. For our industry, GST is the most important and critical thing to be implemented. This will take some time for the government. In this fiscal, there were no major policy initiatives from the government for logistics sector. Over a period, the VAT system has become complex, because GST has not come in and various state governments were keen on collecting their revenue part. The introduction of new taxes at entry and exit levels by various state governments have further put burden on logistics sector.
In 2014-15, we expect the government to implement GST at least partially, which will be a relief to the industry. Secondly, we are looking at the introduction of scrap value for trucks. In India, trucks have not kept with the pace of quality road infrastructure building up. Many trucks plying on the road are very old and they are inefficient and polluting the environment. The operators are not getting any replacement incentives from the government. In many foreign countries, there is incentive system for truck operators in the logistics sector for replacement of old trucks with new ones, which will enhance the overall productivity. The warehousing operators also are waiting for some tax reliefs from the government.
Another initiative we are looking at is on e-commerce business. Nowadays, the boarders are opening up and a lot of e-commerce businesses are happening all over the world. Our custom rules do not allow a free movement of e-commerce business to India and from India. Government has taken a lot of initiatives to promote international e-commerce business but needs to change custom rules and regulations for an effective e-commerce business.