Deutsche Post DHL Group, the German postal and courier service company is set for growth! Until 2020 DHL plans to make a substantial investment of 268 million dollars in the booming Indian economy. With this investment, the German company is set to increase its logistics business and generate money that is driven by the increasing demand of Good and Services Tax (GST).
In an interview, Deutsche Post AG chief executive officer Frank Appel said; “Goods and Services Tax is a very robust step in realizing ‘Make In India.'”
Furthermore, it will create the opportunity to enhance the logistics network by focusing on cost and service quality instead of an arbitrage taxing system.
The GST is forecasted that it will contribute into creating larger distribution centres, as before the warehouses were located in several different states in order to avoid tax burdens. Therefore, less warehouses would be needed. Appel described this transition as a very prosperous step that will help in attracting investments from around the globe.