Cost and efficiency of the transport system is of paramount importance for the competitiveness and success of export-oriented businesses. States with coastline, seamless connectivity and port capacity with deep draft (Gujarat, Maharashtra, Tamil Nadu and Andhra Pradesh) also happen to be the leading exporters.

On the other hand, many states in the hinterland and in the North East find it difficult to enter export market because of poor logistics compounded by a weak trade facilitation.

"Current indirect tax structure unmakes India, by fragmenting Indian markets along state lines. This has the collateral consequence of also undermining ‘Make in India,' by favouring imports and disfavouring domestic production and exports. The GST would rectify it not by increasing protection but by eliminating the negative protection for imports," the ASSOCHAM study concluded.
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