THE LOGISTICS REVOLUTION OF INDIA
India is on the cusps of a logistics revolution. With the advent of technology and E-commerce, the logistics sector of India has undergone unprecedented growth over the past few years. In a span of 2 years from 2014, the country moved from the 54th place in the World Bank LPI Index to the 35th spot.
India’s GDP is expected to reach 3.02 trillion by 2020. In the past ten years, the contribution of the manufacturing sector in India to the GDP has increased from 16% to 18.32%, whereas the contribution of the logistics sector is 14.4%. With the introduction of the government scheme ‘Make in India’, the country aims to bolster the contribution of the manufacturing sector to a staggering 25% of the GDP by 2025. The logistics sector of India is quintessential in the countries quest to become a manufacturing giant and hence it’s not a surprise that the logistics market in India is forecasted to grow at a CAGR of 10.5% in the period from 2019 to 2025.
Currently the logistics industry is comprised mostly of inbound and outbound sectors of producers and service supply chains. During recent times, the sector finally got its long due attention from business companies, investors and policy makers thereby resulting in the optimization and development of the industry. The grant of Infrastructure status along with the introduction of the E-way Bill & the implementation of GST, has envigored the sector with opportunity and streamlined the functioning of the system. With the advent of E-commerce in the sector, local startups have gained substantial foothold in the industry over the past few years and the sector has achieved a minimal sense of structure and organization. Recent government initiatives and policies like the dedicated freight corridor and improved logistical parks has significantly strengthened the sector but the optimization is far from complete.