A report on India’s warehousing industry: CARE Ratings
The warehousing segment has evolved from providing not only custody for goods but also offering value-added services such as sorting, packing, blending and processing. With the evolution of an organised retail sector, modern warehouses for the storage of perishable goods have become indispensable. North America is the largest geographic region accounting for nearly 28% of the global market.
Warehousing constitutes only 15%-35% of the total logistics costs but its importance is significant with respect to the role it plays in the smooth functioning of supply chain networks.
Domestic Scenario. The domestic warehousing market is highly fragmented with most of the warehouses having an area less than 10,000 sq ft. Approximately 90% of the warehousing space in the country is controlled by unorganised players, which manage small-sized warehouses with limited mechanisation. Fragmented warehousing footprint results in higher average inventory holding, in addition to resulting in higher storage and handling losses, driven by lower level of mechanisation. But lately, the sector has been attracting investments from international players which is propelling the formalisation of the sector. With respect to the regulatory ecosystem, many state governments are announcing dedicated logistics sector policies.
Budget Proposal Aims to Boost Investments
The recent budget proposal has introduced measures designed to promote investments and generate job opportunities across various industries, as reported by the Economic Times. This initiative seeks to stimulate economic activity and strengthen the country's growth trajectory by encouraging both domestic and foreign investments. Key aspects of the proposal include targeted incentives for sectors poised for expansion, such as renewable energy, infrastructure, and technology. The government aims to create a more favorable investment climate by offering tax benefits, subsidies, and streamlined reg..
Indian Financial System Resilient Amidst Challenges
The Reserve Bank of India (RBI) Deputy Governor M. Rajeshwar Rao has emphasized the robust nature of the Indian financial system despite global economic headwinds, according to Economic Times. Rao?s comments reflect confidence in the stability and resilience of India's financial sector amidst a backdrop of international economic uncertainties and financial volatility. Rao highlighted that India?s financial system is well-equipped to handle external shocks due to its solid regulatory framework and prudent risk management practices. The country?s banking sector has demonstrated resilience throug..
SC Allows State Tax on Mines, Minerals
Opposition leaders have welcomed the Supreme Court's recent decision permitting states to levy taxes on mines and mineral-bearing lands, as reported. The ruling is seen as a significant victory for state governments seeking greater control and revenue from natural resource extraction within their jurisdictions. The Supreme Court?s decision empowers states to impose taxes on mining operations and mineral-rich lands, which could enhance their revenue streams and enable better management of local resources. This move is particularly important for states with substantial mineral resources, as it a..
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