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JIO will Enable Logistics Services in India

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JIO will Enable Logistics Services in India

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Goods and Services Tax Bill is expected to be implemented in April 2017. One sector which is sure to benefit is the logistics sector in India. And we have seen many articles highlighting the reasons behind it as well. But here we will also highlight how Reliance Jio is going to do more for Indian Logistics’ modernisation.

Goods and Services Tax Bill is expected to be implemented in April 2017. One sector which is sure to benefit is the logistics sector in India. And we have seen many articles highlighting the reasons behind it as well. But here we will also highlight how Reliance Jio is going to do more for Indian Logistics’ modernisation.

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JIO will Enable Logistics Services in India

  1. 1. JIO will Enable Logistics Services in India Goods and Services Tax Bill is expected to be implemented in April 2017. One sector which is sure to benefit is the logistics sector in India. And we have seen many articles highlighting the reasons behind it as well. GST is surely the biggest indirect tax reform since independence. This tax will bring uniformity to the tax structure by replacing a number of central and state levies with a single unified value added tax system and make us the world's biggest single market. It will also increase the ease of doing business and even for the government it will ensure a broader tax base and easier tax collection. This law will also be hugely beneficial to the Logistics Industry in India. The tax avoidance by majority unorganized players creates a cost gap between them and the organized players. With the introduction of GST, every logistics company will be covered under a uniform tax base, improving the cost competitiveness between organized and unorganized players. Also, with GST implementation, the interstate goods flow will be faster and transit time will be lower. A natural consequence will be higher truck utilization and an increased usage of high tonnage trucks. This will further bring down logistics costs and benefit not just logistics companies but every stakeholder in the industry. But here we will also highlight how Reliance Jio is going to do more for Indian Logistics’ modernization. Movement towards Video Proof: Jio’s introduction into the logistics processes will ensure faster 4G connections. This means that any logistics company will be able to send a video proof of a delivery made. Any delays which a trucker faces can also be communicated real-time to a shipper who will then be encouraged to pay him demurrage. Cams on the dashboard and rear cameras can also be used to send across proof easier owing to a good 4G speed. All this means more accountability for the shipper or transporter. RTO’s will become more accountable as well: Now there can be a number of YouTube videos of RTOs and vehicle owners/drivers can video proof the transactions. Lower Vehicle Tracking, IoT costs: This will happen as using JIO one can send more data at costs it took to send 2G data earlier at the same investment and enable one to send images, video clips, document scans and more. The free voice calls are an added advantage. This will increase adoption of data services as well as smart phones cost lesserthan dedicated GPS devices. Providing so many services at such low costs of Rs. 50 a GB- Rel Jio will not only revolutionize the way we all communicate but will also be an enabler when it comes to logistics industry in India.

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