Global logistics executives pick India as leading investment spot

Agility Logistics has launched the 2017 Agility Emerging Markets Logistics Index, an annual survey of more than 800 logistics professionals. The Index provides an annual snapshot of industry sentiment and a ranking of the world’s 50 leading emerging markets by size, business conditions, infrastructure and transport connections.

Logistics executives pick India is their top investment destination and say the health of China’s economy is likely to set the tone for emerging markets overall in 2017 in a new supply chain industry survey.

China, the world’s second-largest economy, again topped the 50-country ranking. India climbed past the United Arab Emirates (UAE) to the second spot, its highest-ever Index ranking. Malaysia at fourth and Indonesia at sixth were unchanged from a year ago.

In the survey, industry executives identified India as the emerging market with the most potential as a logistics market and as the place their companies are most likely to invest in the next five years. 23 percent of survey respondents said passage of a key tax reform made their companies more likely to invest in India.

“India’s economy has grown faster than any in the world over the past two years,” said Chris Price, Asia-Pacific CEO of Agility Global Integrated Logistics. He added, “Tax and economic reforms have added to enthusiasm about India, although that optimism has been tempered somewhat in the short-term by the government’s surprise decision to remove large bank notes from circulation and encourage broader use of cashless forms of payment.”

76 percent of survey respondents said China’s economy is slowing, but only 17 percent said the slowdown is significantly hindering the transport and logistics sector. Nearly 66 percent said a slowing Chinese economy will not alter their business or expansion plans in China.

Price said, “Vietnam, India and other countries have lured away some production with cheaper wages and incentives,” He continued, “But the e-commerce revolution in China is driving huge inbound freight volumes and reflects a healthy shift toward growth that’s balanced between exports and domestic demand.”

The Index, in its eighth year, ranks emerging markets countries by factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors.

“Emerging markets continue to deliver the highest growth rates in the world, but as links in the global supply chain, countries can be extremely hard to evaluate,” said Essa Al-Saleh, CEO of Agility Global Integrated Logistics. “The Index and the survey are useful when it comes to identifying the relative strengths and weaknesses of individual markets.”