India’s supply chain network – Growing regional integration, investor confidence
Source:https://goo.gl/fFyRKX
From:Taipei World Trade Center Liaison Office in Chennai
Update Time:2018/12/10
Source: https://goo.gl/fFyRKX
The supply chain industry has a cascading impact on almost all aspects of trade and retail. As India opens its economy further, financing the improvement of this linkage sector is vital for business growth.A modernized and efficient supply chain improves the ease of doing business, scales down the costs of manufacturing, and accelerates rural and urban consumption growth due to better market access.
Until recently, infrastructural woes had a crippling effect on the supply chain network in India. Suppliers, manufacturers, and retailers had to factor in delays in the movement of goods between state borders due to complicated taxes and transport lines running over capacity, increasing overall costs.With the new reforms coming into play, a gradual resolution of these problems seems imminent.
In the last three years, India’s supply chain sector has seen an influx of capital, both foreign and domestic. Firms like Future Supply Solutions have raised almost US$2 billion (Rs 130 billion) in investments from domestic and foreign channels.
Port connectivity in India
India’s ports handle 95 percent of the country’s trade by volume, playing a key role in international supply chains. India currently permits 100 percent FDI for the construction and maintenance of ports.
The government also allows a tax holiday for 10 years and up to 50 percent financial aid – subject to a maximum of US$3.88 million (Rs 250 million) – for investing companies.The leading government initiative in this sector is the Sagarmala project, which will modernize existing ports, and will develop new ones at Paradip Outer Harbor (Odhisha state), Cuddalore/Sirkazhi (Tamil Nadustate), Belikeri (Karnataka state), Enayam (Tamil Nadu state), and Vizhinjam (Kerala state).
Source:
https://www.india-briefing.com/news/supply-chain-india-scope-investors-16384.html/