In a bid to boost growth, the logistics sector is seeking industry status from the Andhra Pradesh government. This will not only help logistics players grow their business but also lead to generation of higher local employment as it’s a labour intensive sector, said experts.
“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 the session on ‘Ports, shipping & logistics: Navigating choppy waters in Covid times’ as part of ‘TOI’s Reboot Andhra Pradesh: Making AP Future Positive’ conclave, supported by RINL, in association with Visakhapatnam Special Economic Zone, Eastern Power Distribution Company of Andhra Pradesh, Coastal Local Area Bank and TNR Talent High School.
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 Rs 37,000 per head for the entire country, Rs 33,000 for AP, while for Gujarat it is Rs 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, adoption of digital technologies can help these sectors. Saurabh Kumar, CEO, GMR Cargo & 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, The 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.