GST and Logistic Industry: The Protagonists of Good Economy

Abstract

The logistics industry has globally enhanced its market size to approximately 8.96 trillion USD in 2023 and is expected to reach 21.91USD by the year 2033.The Indian logistic and supply chain industry is approximately worth USD 317.3 billion with an annual growth rate of 10 per cent, thus being a major contributor to the exchequer’s revenue generation. Some of the major challenges facing the Indian economy are warehousing, transportation and distribution of food grains and other consumables. Considering its vast territory, the logistics industry plays a momentous role in its economy. Lately, the logistic industry has been an important employment generator to as many 22 million people. It is said that the introduction of goods and service tax (GST) in India as “One Nation-One Tax” has pushed the logistic industry growth even faster. Overall growth and result in recent past of logistic industry are tremendous and will grow further and has scope to expand its branches in rural India.

The purpose of this article is to study the possible growth potential in logistic industry in India after the introduction of GST, especially keeping in mind that GST has eliminated octroi posts at State borders, introduced E-way Bills, centralised warehousing, construction of national highways/corridors etc, which have helped the industry to grow further by even reducing trip-time of truckers to an extent.