NEW DELHI: December 24, 2015. A few years ago the BRIC countries - Brazil, Russia, India and China – were perceived as the engines of future global economic growth. Today, with its legacy legal system, democratic institutions and an English-speaking population, of the four India alone seems to be the focus of increasing inward investment by global manufacturers.
Following the general election last year of the BJP party led by Narendra Modi, the government has embarked on an ambitious structural reform program - not least of which includes the country's rail, road and air infrastructure – to complement the promise of double-digit GDP growth that has risen from less than 5.0 percent in 2012 to over 7.0 percent last year.
By comparison, China's GDP has dropped from 11 percent growth in 2010 to 7.0 percent in 2014 with speculation that it is nearer 4.0 percent.
With India's exports, infrastructure investment and R&D levels similar to those of China at the beginning of the Millennium, India may be ideally positioned to emulate China's rapid growth in the next decade - if it can improve its logistics environment.
According to India's Shipping minister Nitin Gadkari, the current cost of logistics is a barrier to the government's 'Make-in-India' initiative. Plans to improve India's air cargo industry and rail network are outlined in the next issue of Freightweek's magazine.
-Simon Keeble is the editor of Freightweek.
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