Future Of Indian Logistics Market

Logistics has been the holding beam for almost every business structure across the world since the rise of the economy. The towering needs of businesses to transport goods and services must be addressed by the logistics sector with best-in-class infrastructure and effective logistics management system. The economic survey of India for 2017-18 has projected the logistics sector to rise from the current worth of $160 billion to Rs 215 billion by 2020. In a PPP (Public Private Partnership) model, the government of India efforts to improve India’s ranking in World Bank LPI (Logistics Performance Index) from 35 to 15 in the coming years. 

The New Horizons in Indian logistics Market
The development in technology and the birth of new industry verticals have created high demands for logistics and delivery of products/services. Not just this but the new set of requirements arisen from the people with busy lifestyles have also added to the increase in logistics demand. Today, if you have done a lot of shopping and still have other plans before heading home, logistics services provider home delivery of your shopped products at your ease of time. 

What can be better than having hassle-free timely delivery of the products and services right at the doorstep anywhere in the world? The growing market with the help of technology and developing infrastructure have made it possible. Developed countries have strengthened their infrastructure and transport system to their full potential in facilitating seamless logistics services in both domestic and cross-border territories. The globalization at the fastest pace ever has taken industries with a storm and the movement of goods from the origin point to delivery station has been made effectively fast and secure. Whether it is a small courier or a complete cargo, logistics has made it easier for people to transport their products on time. The rise of e-commerce on the global platform in the recent times has made logistics a major player in the world economy. 

The efforts to organize the unorganized logistics sector
The government of India has established a separate logistics division in the department of commerce to work for the integrated development of the industryboth in the domestic and the international domain. In fact, the Ministry of Commerce and Industry (MoCI) has proposed framing of a unique dedicated online portal to accentuate logistics services in the country and bringing together the buyers, logistics service providers, and the related government agencies. The Ministry of Transport is also playing a key role in upbringing the logistics sectors by strengthening the land connectivity through various programs like ‘Sagarmala’ project. 

The economic survey 2017-18 presented in the parliament has speculated the Indian logistics Industry to grow at a CAGR of 10.5% crossing the 200 billion USD mark in coming time. With currently 22 million people employed in the industry, logistics is expected to extend employment to over 40 million people by 2020.  With such a promising future, the Indian logistics sector has become the new sensation encouraging GoI to frame a dedicated IT backbone for this industry. Even the import-export system has been upgraded reducing the cargo release time to only 2 or 3 days. 

The Goods and Service Tax (GST) framed under the center and state list has paved the path for a better logistics sector. The Central Board of Indirect Taxes and Customs (CBIC) under the Ministry of Finance also has brought new provision under CSB IV and CSB V to the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010 providing people 100% GST refunds in the logistics services. Customers can easily move their shipments with minimal paperwork and faster delivery and customs clearances with the new policy change by the GoI. Apart from this, to foster the growth of logistics sectors many start-ups and established enterprises have entered the market equipped with the latest technology, quality warehousing, and functional transport facility to provide world-class services in the Indian market. The recent entry of international logistics players has also ensured the boost of the Indian logistics industry. This will be a sight to behold the glorious rising of logistics industry in coming years, especially marking 2020. 

Indian Companies is also supporting customers by offering Return Management, Fulfillment, Warehousing and 3PL services in all major ecommerce markets like USA, Europe, Australia and Middle East countries through their worldwide network. Which is creating a larger scope for Indian sellers to sell their products globally with a competitive edge. Also now Indian logistics companies are creating opportunities for other counties sellers to sell their products in India by providing seamless custom clearance and distribution across the country. Therefore Indian logistic industry is having more opportunities in the future time.