Infrastructure Status For Logistics Sector A Major Growth Catalyst

The Indian logistics sector being granted infrastructure status is a landmark move with wide-ranging implications for an industry set to grow 10-15% annually.

- Ramesh Nair

Now, the logistics sector is included in the harmonised master list of infrastructure sub-sectors under a new head ‘Transport and Logistics’, and categories like Multi-modal Logistics Park, Cold Chain Facility, and Warehousing Facility are clearly defined. This will have decidedly positive implications, making the sector a sought-after asset class for investments.

Investments to rise

This development makes it easier for companies operating within these segments to raise long-term credit from banks and other financial institutions at lower rates, and also attract foreign investments. As per the government, the inclusion also makes it easier for logistics companies to:

1. Access larger amounts of funds as External Commercial Borrowings

2. Access longer-tenure funds from insurance companies and pension funds

3. Be eligible to borrow from India Infrastructure Financing Company Limited