Chennai: the new logistics hub!

Chennai: the new logistics hub!There is no denying to the fact that the Indian market has been experiencing significant development over the last decade. In fact, as the economy has been able to continuously reach a growth rate of around 8-10 per cent.

However, the logistics costs in India are high at 13-14 per cent of GDP compared to 8-9 per cent for developed countries.

While on the one end; the Government has been promoting the logistics sector by allowing 100 per cent FDI, eliminating CST, introducing VAT, improving multi-modal transportation, there are many logistics parks that have come up across major cities such as Mumbai, Kolkata, Chennai and Hyderabad and are witnessing significant investment in infrastructure.

However, apart from all, Chennai has been the apple of the eye of several companies that are looking to keep their logistics costs competitive in the domestic circuit. It may be noted here that Oragadam, being close to Chennai, is one of the fastest growing industrial towns.

Moreover, the region also owes its strategic advantage to a large manufacturing presence, demand base, supplier presence, established infrastructure and excellent multi-modal connectivity which take it on the top of the list of several mulinats.