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Effect of Economic Growth on the Logistics Sector in India

DOI: 10.4236/tel.2019.91016, PP. 210-222

Keywords: Logistics Sector, Multiple Linear Regression, Economic Growth

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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.

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