GST will usher 112% growth in warehousing by 2021: JLL-India
Goods and Services Tax (GST) will usher in a new era for the warehousing and logistics sector in India that could see 112% growth in the sector by 2021, a report released by real estate services firm JLL India said. It said GST is playing a pivotal role in boosting the hub-and-spoke model as well as the growth of Multi Modal Logistics Park (MMLP).
India will witness 20% CAGR in warehousing, says JLL
"Due to GST, India will see over 20% CAGR in warehousing and will have approximately 25 new MMLPs in the next few years," JLL India CEO and Country Head Ramesh Nair said. As of 2017, the total combined warehousing space (grade A and grade B warehousing) was 140 million sqft. This was expected to jump to 297 million sqft.
Around Rs. 45,000cr to be invested in developing warehouses
The most prominent impact of GST on warehousing sector will facilitate companies to explore a different distribution model from the traditional carrying and forwarding (C&F) distributor based-models. It will also boost consolidation post GST, the focus would shift on efficiency rather than tax-saving through smaller warehouses, JLL said. JLL estimated around Rs. 45,000cr will be invested in creating storage facilities across India from 2018-2020.
