Abstract
Purpose: The aim is to attempt to explore the effect of selected economic growth indicators on the net profits in the logistics sector in India. Methodology: The research type used is causal research. The data are collected for the period of 1991-92 to 2016-17 from CMIE, RBI and government websites. The paper tries to establish the relationship among the independent variables such as the change in taxes, change in inflation rate and the change in GDP of Indian services sector on the dependent variable as profits of the Indian logistics industry. Findings: Results indicate that the tax expenses and inflation rate have a negative impact on the profit of logistics sector whereas the change in GDP service sector has a positive impact on the profit of the logistics sector. However, GDP service sector affects the profit of transportation industry less than the impact in comparison to the tax rate and inflation. Originality: This study provides the foundation for future research in the logistics sector. In today’s globalization and digitalization and with the advent of tax reforms like GST, this research is relevant with regard to determining the effect of taxation, inflation, and GDP on the logistics sector in India.
Highlights
The logistic sector is considered to be an important sector to facilitate increased international trade in consequence of globalization and digitalization [1] [2]
Results indicate that the tax expenses and inflation rate have a negative impact on the profit of logistics sector whereas the change in Gross Domestic Product (GDP) service sector has a positive impact on the profit of the logistics sector
The domestic cargo and international cargo capacities of airways required to expand if the logistics cost reduces and the firms look forward to expand its profits for the transportation sector of the economy [47]
Summary
The logistic sector is considered to be an important sector to facilitate increased international trade in consequence of globalization and digitalization [1] [2]. It plays a key role in economic development and growth of a country because the logistics sector helps to transport goods across the nation. The growth in the field of logistics sector results in competitiveness among the countries and it becomes a vital element of economic development and growth of the country. The logistics sector has changed the way marketplace behaves and became apparent few years ago
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