What’s Next in Logistics
Our Whats’ Next Briefing Series explores upcoming sectoral trends and its likely impact on leadership. In this briefing, we look at the major trends that will shape the logistics industry in India.
An economy is as efficient as its logistics sector. The focus on competitiveness led by the government is now supporting effort in the private sector to improve its value chain. The rapid rise of organized retail and e-commerce is complemented by the focus on unified markets in agriculture and transport. The Indian Logistics sector is poised to gather greater momentum as India emerges as an integrated manufacturing hub with initiatives like GST implementation, ‘Make in India’ campaign, bilateral trade corridors, restructuring of ports, and multi-modal transportation infrastructure. The recent growth in the manufacturing sector, which is likely to gather steam with the gradual revival of the global economy and India emerging as one of the earliest major economies to recover from downturn, is significant for the development of the logistics sector.
While the logistics industry in India has not received due attention or recognition, it is a sector with huge potential and increasing demand especially with the revival of the Indian economy and the influx of new companies in sectors requiring logistics services. In 2014, the logistics sector recorded revenues of about US$104.10 billion, a growth of about 4.9% over the previous year. The sector is likely to see consistent growth of around 6-7% per year during 2014-2020 and reach revenues of about US$150-160 billion by 2020.
India wasn’t a unified market. Now the internal borders are being broken down. In this briefing, we look at the major trends that will shape the logistics industry in India.
Read the full briefing here.