Strength Through Diversification: Opportunities across Asia Pacific

trade agreements with over 50 countries, many of which were finalised over the past three years and is engaged in a further 16 Free Trade Agreements. Notwithstanding this strong base, India is currently lacking in high quality transport infrastructure. This is most readily seen in the high cost of logistics, which sits at 12-13% of GDP compared to the global average of nearer 8%, though again there is policy [9] in place to affect reduce these costs. Moreover, greater capacity needs to be built to accommodate a larger volume of throughput. While land has been appropriately zoned for industrial purposes, regional development agencies have been slow to release this land. Furthermore, there are also compliance issues with it taking almost double the length of time to obtain the required export clearances compared to similar markets within the region.

Having established itself as a core destination for business outsourcing and global capability centres, India is now firmly turning its attention to growth in the industrial sector and playing a major role in regional and global supply chains. As incentives continue to flow into the sector, this has prompted a raft of activity with industrial land prices rising substantially across core and peripheral locations. Given the underlying growth trajectory further land-pricing increases and therefore rental growth, are practically assured.

[9] PM Gati Shakti



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