Logistics industry betting big on ‘Make in India’

June 29, 2015 12:17 pm

A need for an impetus to coastal and inland waterways movement is of paramount importance for seamless, cost-efficient movement of cargo.
Vivek Arya, MD, Rhenus Logistics India Pvt. Ltd.______________________________________________
 Rhenus Logistics India, the Indian arm of Germany-based Rhenus Logistics, is an ISO 9001:2008 certified company and is active in all modes of transport which is road, rail, air and ocean. The company provides customs brokerage, project logistics and warehousing services to its customers through dedicated as well as shared facilities. It is an integrated logistics service provider and provides all services in-house.
In an interview with Subhajit Roy, Vivek Arya, MD, Rhenus Logistics India Pvt. Ltd. highlights the opportunities and challenges of ‘Make in India’.
Optimism in the airSharing his perspective on the ‘Make in India’ initiative, Mr Arya says, “The campaign will lead to an increase in manufacturing in India which will create opportunities for the logistics sector. There will be a significant increase in the movement of capital goods, raw materials and finished goods.”
He feels that the ‘Make in India’ will also create a demand for domestic and international transportation, warehousing and distribution. “GST (goods and services tax) will also play a key role in the expansion of the logistics sector in India. 3PL in India is still in its nascent stage and holds phenomenal growth opportunities that can be unlocked. The entire logistics industry is optimistic about the ‘Make in India’ campaign,” added Mr Arya.
At the same time Mr Arya has also raised his concerns about the roadblocks within the government agencies. He says, “The top level in the government is talking the right language, but the ground reality currently is different. The allotment of land to various industrial zones is delayed. The process of getting permissions is a cumbersome process with multiple authorities to approach. There are many companies who want to start business in India, but are running from pillar to post to get permissions and land allotment.” He suggests that there needs to be a single window system, ideally like Singapore to encourage new businesses to set up in India.
According to Mr Arya currently the laws are very convoluted and vague. Single window system is expected to enable the companies to have clarity on various laws regarding licensing, obtaining clearances and other aspects.
India needs to get the required infrastructure and policy support to make a mark in the global market. The authorities need to focus on expediting the multi-lane highway projects, the freight corridors to be completed in time. “A need for an impetus to coastal and inland waterways movement is of paramount importance for seamless, cost-efficient movement of cargo,” observed Mr Arya.

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