Mapping India Foreign Trade Path: Strategic Logistics Gravity Centres

Abstract

This research paper studies a region with significant potential scope to be developed as the all-encompassing logistics solution to international trade movements within India. With India’s export and import market enjoying a prolonged period of growth supported by the government’s favourable policies, there is an extensive scope for developing support industries. The infrastructure supporting export-import businesses in India needs an overall enhancement. Specifically, the logistics industry in India is quite skeletal, though rapidly developing. Moreover, its development is erratic and need-based. It requires planned and structured growth, a design-based progression. Systematically developing a potential region is a basic requirement. In our study to identify and evaluate a geographical cluster in India capable of serving seaports, airports, and trade districts, we have used a multicriteria decision-making approach. While geographical distance is a prime influencing factor, other determinants like connectivity, population density, geography, and GDP of the potential districts also play a critical role. The study adopts a novel approach by holistically examining all international trade factors, including major sea and air ports as well as principal export-import districts. While the Gravity Model is used to synergize the multifaceted information, an advanced evaluation derives a comprehensive analysis of potential locations. The study culminates in a proposal for the strategic development of logistics centres to boost India’s international trade. This study provides valuable insights to develop logistics infrastructure and strategy for service providers and businesses. It is limited by the reliance on generalised data available in the public domain and by the exclusion of explicit modes of transport and commodities. This paper delves deep into analysing, calculating, and providing actionable insights toward developing a potent region for logistics. The study recommends sustained development in a particular area to reduce logistics costs and increase efficiency and speed.

Keywords: Logistics Infrastructure, India Global Trade, Logistics Centre, Gravity Model

View PDF