Warehousing Industry Shines Under GST Regime

A good fortune has been turned up for both warehousing and real estate sector across the country as the implementation of goods and services tax as well as make in India concept of the government of India made both these sectors lucrative of investment.

There is also a good demand from both of these sectors for the delivery of more services to the clients. While on the other side, the infrastructural development of the logistics industry has attracted private investment.

The logistics industry is well known for its infrastructural facility including, warehousing, cold chains and industrial parks and all these are on the verge of expansion due to the implementation of GST.

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According to the statement of an industry expert, “Warehousing and logistics have emerged as one of the biggest growth areas in recent times. We have seen Rs 15,000 crore of private equity investments in warehousing space since 2014. While it made up around 10% of total private equity investment in 2017, the share is now expected to grow further, claiming a larger share of investment. India’s logistics and warehousing sector are rapidly transitioning through a revolutionary phase.”

The investment has been surged up since the reforms and ease of doing business are assured by the government policies. According to the stats and calculations, investments of around 50,000 crores are in line between the year 2018 to 2020 for the development of multiple warehousing facilities.

It is also speculated that the warehousing industry itself ready to provide jobs to over 20,000 people in the next 3 years with multiple categorisations and levels.

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The implementation of goods and services tax and the expansion of e-commerce made significant demand in the warehousing across the country. An expert said, “We can clearly see increasing institutional participation in warehousing space.”