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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