The central government's programme for port-led development - Sagarmala - is all set to optimise India's logistics services in coming years, said Visakhapatnam Port Trust deputy chairman PL Haranadh.
Participating in a conference on 'Cost, Finance, Taxation and Accounting: Issues and Challenges in Logistics and Supply Chain Management' organised by Gitam School of International Business on Saturday, Haranadh said logistics play an important role in economy of a country particularly if we reduce logistics cost that ultimately lead to positive impact on GDP growth.
He pointed out that the present thermal power plants are procuring coal through railways which is increasing the logistics cost. If the power sector depends on coastal shipping for coal supply, then it would reduce the logistics cost and also impact power tariff. This is applicable to the steel industry as well, he added.
He further said the new Goods and Services Tax (GST) Bill would be of immense benefit to the logistic sector as it would reduce all costs.
IIM-Ahmedabad Public Systems Group professor and noted logistic expert G Raghuram said the GST Bill is a big advantage to e-commerce growth in the country. He suggested that the checkpoints could have been avoided irrespective of the GST through a proper IT-based tracking system.
"There is need to re-evaluate manufacturing and sourcing locations due to uniform taxation," he added.