Agility has revealed the results of their survey that interviewed logistics executives who have picked India as their top investment destination, and China’s economy is likely to set the tone for emerging markets overall in 2017 in a new supply chain industry.
The annual survey of more than 800 logistics professionals is part of the 2017 Agility Emerging Markets Logistics Index, an annual snapshot of industry sentiment and a ranking of the world’s 50 leading emerging markets by size, business conditions, infrastructure and transport connections.
China, the world’s second-largest economy, again topped the 50-country ranking. India climbed past the United Arab Emirates (UAE) to the No. 2 spot, its highest-ever Index ranking. Malaysia at No. 4 and Indonesia at No. 6 were unchanged from a year ago.
In the survey, industry executives identified India as the emerging market with the most potential as a logistics market and as the place their companies are most likely to invest in the next five years. Twenty-three percent of survey respondents said passage of a key tax reform made their companies more likely to invest in India.
“India’s economy has grown faster than any in the world over the past two years,” said Chris Price, Asia-Pacific CEO of Agility Global Integrated Logistics. “Tax and economic reforms have added to enthusiasm about India, although that optimism has been tempered somewhat in the short-term by the government’s surprise decision to remove large bank notes from circulation and encourage broader use of cashless forms of payment.”
Mr. Price continued, “Vietnam, India and other countries have lured away some production with cheaper wages and incentives. But the e-commerce revolution in China is driving huge inbound freight volumes and reflects a healthy shift toward growth that’s balanced between exports and domestic demand.”
John Manners-Bell, Chief Executive of Ti, said: “Uncertainty and volatility have characterized many emerging markets in 2016. This has been compounded by the political environment in Europe and the U.S., which will have direct consequences on trade with Latin America, Asia and Africa. However there have been many positives too — for example, the strong performance of India. More than ever, the Index identifies and contrasts those markets which will prosper from the most vulnerable and poorest performing.”
The full report can be found here.