Logistics sector benefits from GST
Mumbai : India being bound by sea on three sides and has a 7,516.6 km coastline, making it the seventh largest in the world. Therefore, it is evident that Indian ports handle 90% of the Exim trade volume. The railways contribute 9% to the GDP; the road sector contributes 6%, whereas the ports’ share of GDP is only 1%.
This questions the vast potential for development of coastal cities and ports. To throw more emphasis on port logistics, Modi government has decided to pursue Sagarmala project. Under this, 12 smart cities will be developed near ports with an investment of Rs 50,000 crore. Briefing on Sagarmala project as a crucial infrastructure initiative to up India’s GDP by 2%, Mr. Brijesh Lohia, Managing Director of Global Ocean Group says, “This project will boost economic activity near coastal locations and establish Coastal Economic Zones (CEZs). Kandla Port has been identified as a potential CEZ.
The project will redevelop existing port infrastructure through upgrade in port handling equipment and extensive use of IT in improving monitoring and operations of port activity. Jawaharlal Nehru Port Trust (JNPT) will be one of the ports to receive Rs 4,000 crore to develop its SEZ.” The project is expected to enhance shipping and port handling capacity. Specialised ports with focus on handling coal, energy, chemicals, commodities, etc. India suffers from poor port linkages from existing port infrastructure and lack of developed infrastructure near ports.