Asian-Pacific Rim Logistics

Asian-Pacific Rim Logistics

Global Context and Local Policies

Peter J. Rimmer

Encompassing China, Japan, South Korea and Southeast Asia, extending to Australasia and connecting with South Asia, the Asian-Pacific Rim forms the world’s most dynamic economic region. Comprehending the region’s logistical structure and its institutions are of pivotal importance for businesses, researchers and policy-makers.

Chapter 12: India

Peter J. Rimmer

Subjects: asian studies, asian economics, business and management, operations management, economics and finance, asian economics, regional economics, urban and regional studies, regional economics


The Indian Government is in a dilemma. Should India follow the People’s Republic of China’s transport and logistics strategy manifest in vertically integrated multinational supply chains, a large share of international trade in intermediate and unfinished goods, and openness to foreign domestic investment? Or, prompted by the Global Financial Crisis (2008–09), should India reduce its export dependence on Europe and North America and capitalize upon the prospect of increasing cross-border trade with the Asian-Pacific region, through a comparative advantage in the manufacture of motor vehicles, textiles and garments, information technology (IT) and IT-enabling services? If India is to become a manufacturing powerhouse like China it will need investment in transport and communications infrastructure for just-in-time (JIT) delivery and opportunities to increase its participation in the global production and trading system. Should the Indian Government adopt the counter-strategy of reducing export dependence on Europe and North America to offset volatility, it will need to capitalize on its 1991 ‘Look East’ policy and forge stronger links with the Asian-Pacific Rim to accommodate increasing trade, derive synergies from the fragmentation of production networks, and offer greater access to regional markets for seafood, fruit and vegetables, motor vehicles and apparel (Bhattacharyay, 2010).

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