GST’s E-Way Bill is Logistical Nightmare for India’s Air Express Industry

Gunja Kapoor 24th July 2017

The numerous conditions and riders attached to how the e-bill system functions will almost certainly hamper ease of doing business.

India sits at number 35 on the World Bank Logistics Index, which takes into account multiple variables such as customs, infrastructure, international shipments, logistics quality and competence, tracking and tracing, and timeliness.

As Prime Minister Narendra Modi pushes for better standards in ease of doing business, bolstering the economy by way of the ‘Make-in-India’ initiative and looking to bring in increasing amount of foreign investment, it is important for us to analyse India’s logistics backbone accordingly.

While GST is expected to boost India’s ease of doing business rankings, it is still unclear if the big bang tax reform will yield similar results for the logistics sector in general and the air express industry in particular.

The following table represents India’s logistics performance rank under various categories.

  2007 2010 2012 2014 2016
Overall Rank 39 47 46 54 35
Customs 47 52 52 65 38
Infrastructure 42 47 56 58 36
International Shipments 40 46 54 44 39

Note: Views expressed in this blog are those of the author.