Logistics Sector in India: Opportunities and Constraints for EU Business

Type Journal Article - Journal of Indo-European Business Studies
Title Logistics Sector in India: Opportunities and Constraints for EU Business
Author(s)
Publication (Day/Month/Year) 2011
Page numbers 87-113
URL http://www.ciebs-pgcim-mba.de/fileadmin/redakteur/pdf/JIEBS_2011.pdf#page=90
Abstract
This study analyses the opportunities, prospects and constraints for EU businesses in Indian logistics sector against the backdrop of India’s high economic growth. Based on secondary information and a primary survey, the study examines factors determining EU investment and collaborations in India, barriers to investment and the way forward. The study found that there is a need for significant investment in the Indian logistics sector and a substantial part of it can come from the EU. A number of EU companies in India are multinationals and have entered into various logistics segments through mergers and acquisitions and other modes of entry. They are committed to the Indian market and foresee a double digit growth. The Indian and EU companies have complementarities and there are a number of areas where they can further collaborate to benefit from each other’s expertise. However, there are barriers such as fragmented segments and intermodal infrastructural constraints which can be addressed through domestic reforms and the ongoing India-EU Bilateral Trade and Investment Agreement (BTIA). If addressed, it would not only create more opportunities for India-EU business collaborations and EU investment, but also enhance economic activity, efficiency and global competitiveness of Indian logistics sector.

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