Classifying regulatory reforms as the important constituent to building a supply chain in India, Adi B Godrej, chairman, The Godrej Group, accentuated the need for setting aside redundant legislation, organising logistics out of the farm, and addressing the problem of low yields in India.
Addressing the session on ‘No time to wait: Building a Supply Chain in India’, on the concluding day of India Economic Summit 2007, Godrej acknowledged that the supply chain to rural India is reasonably well organised. He said that it was the development of a supply chain from rural India that was a challenge.
Godrej also observed that though currently the indirect tax regime was a handicap to the logistics chain in India, modern legislation would ensure the integrated benefits of cost reduction, increased consumption and avoidance of tax evasion.
Attributing the difficulties of supply chain to lack of infrastructure, presence of multiple intermediaries and basic problems like that of electricity and power, Atul Singh, president & chief executive officer, Coca-Cola India, stressed the need for the government to devise a framework for co-existence of all stakeholders in the supply chain.
Considering infrastructure bottleneck and inadequate farmer education as the primary constraints, Paul H Graham, chief executive officer, DHL Exel Supply Chain Asia Pacific, Singapore, recommended public-private partnership as a feasible ssolution to the development of logistics chain in India. He also underscored the need for developing the rail network as an efficient environment-friendly option.