Following UP government granting industry status to the logistics and warehousing sector, the sector now in a bid to boost growth looks forward to seeking Industry status from the Andhra Pradesh government. As per experts, this move along with the growing business of the logistics players will also lead to the generation of higher local employment as it’s a labour-intensive sector.
“The government has to give the logistics sector industry status. The Uttar Pradesh government has already given it. If we are granted industry status, it will offer many advantages such as in the area of land conversion, warehouse construction and property taxes, among others. The other area is infrastructure development,”~ G Sambasiva Rao, MD, Sravan Shipping Services Pvt Ltd, said at an event.
Krishna GV Giri, executive vice-chairman of AP Economic Development Board (APEDB), mooted port-led industrialisation.
“If you take the GVA (gross value added), it is INR 37,000 per head for the entire country, INR 33,000 for Andhra Pradesh, while for Gujarat it is INR 1,11,000 per head because they have some fantastic ports which led to the growth of business and industries around it. We are not just planning ports but are also looking at industrial zones around it,” he said.
While creation of infrastructure takes time, in the near term, the adoption of digital technologies can help these sectors. Saurabh Kumar, CEO, GMR Cargo and national board member, Air Cargo Forum India (AFCI), said adoption of tech will give these sectors visibility and also ensure economies of scale. Shivaprasad Raja, Principal, Boston Consulting Group (BCG), too felt that more companies are willing to up their tech platform spend due to the pandemic.
Anil Narayanan, deputy COO, Visakha Container Terminal Pvt Ltd, said after geopolitical tension between India and China increased recently, there has been minute scrutiny by Chinese authorities in clearing Indian goods.