Why India needs a new logistics network

Photo: Livemint

One of the central promises of the new goods and services tax (GST) that is set to be rolled out in July is that it will allow companies to restructure their supply chains once the domestic market is truly integrated. It is hard to see how the production structure can be improved radically unless India builds a new logistics network to allow inputs, components and finished goods to move across the country seamlessly. The success of the flagship Make in India programme is also critically dependent on a modern logistics network.

The man who will have to put in the plumbing necessary for it all to work is Union road transport and highways, shipping and ports minister Nitin Gadkari.

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