Development in the Fast Lane: Lucrative Investment Opportunities in the Logistics sector in Punjab

Logistics is one of the strategic sectors propelling industrial growth of the country. The sector is a major contributor to the national economy by creating employment and enabling cost efficient trade. Currently, the logistics sector in India is valued at USD 215 billion and is expected to grow at a CAGR of 10.5% between 2020-2025. The growth in Port Capacity is expected to grow at 6% by 2022, thereby, increasing the cargo handling capacity. The growth in Rail freight traffic is expected to reach 3.3 billion tons by 2030, and Air traffic is expected to grow by 17 million tons by 2040[1].

 Punjab, being one of the production hubs of the country along with its strategic location and direct connectivity to more than 25% of consumption base of the country, has a lot to offer to service the logistics needs of Indian industries. With just 1.5% of the national area, Punjab contributes to around 3% of the national GDP. The State is a major producer of Food Grains and leads in contribution to the central pool of grains. High quality goods such as bicycles, sports goods, textiles, etc., which not only service the domestic demand but are also exported all around the world, are manufactured here. Punjab is strategically located with direct connectivity to neighboring states like Jammu & Kashmir and Himachal Pradesh. This ensures that the warehouses situated in Punjab can cater to the demand of North India with shorter turn around times and lower inventory levels thus improving the competitiveness of the companies.

Punjab offers impeccable infrastructure for logistics operations in the State. The State has best-in-class rail and road connectivity along with the presence of CFS/ICD spread across the State. The State offers good connectivity with the Eastern and Western bounds of the country through the Dedicated Freight Corridors. The State has 2 international airports and 4 domestic airports with facilities such as perishable Air Cargo Terminals.  Punjab has been consecutively ranked 2nd for two years in the ease of logistics by Govt. of India, which is testimony to the robust logistics infrastructure present in the State. 

Owing to the good infrastructure, high volume of industrial and agriculture production, excellent location and connectivity to all parts of India and world, Punjab is an ideal location for setting up of facilities such as Multimodal Logistics Parks, warehouses, cold stores etc.  Patiala, Ludhiana, Amritsar, Bhatinda, and Pathankot are few of the emerging districts of Punjab that are witnessing rapid industrial progress. These districts are best suited for setting up logistics facilities.

To capitalize on the available investment opportunities, the state government of Punjab has identified Logistics as a thrust sector in Industrial Business Development Policy-2017. A host of attractive incentives such as Reimbursement of Net GST, 100% exemption from electricity duty, 100% exemption/reimbursement from stamp duty, 100% exemption of EDC and property tax, are available for logistics units coming up in the State.

Invest Punjab is one stop office for all regulatory clearances required by the industries. The office ensures that all clearances are provided to the industries seamlessly and in a transparent manner. The office has implemented numerous Business reforms such as deemed clearances to ensure timely regulatory clearances.

It is indeed safe to say Punjab is one of the best places to be for setting up of logistics business in the Country.

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