Future of Logistics in India

Logistics is simply defined as the art of managing the flow of goods, products, services, information, and people from one place to another. It encompasses a harmonization of various professional activities like planning, controlling, managing, directing, coordinating, forecasting, warehousing, and transportation.

The industry all over the world is growing including the logistics in India. The country at present is one of the prime destinations for this service all over the world and is expected to grow with leaps and bounds in the years ahead. The key factor that has pushed the industry to new heights is the strong economic growth. In the recent years India has witnessed a strong growth in trade with its current proficiency, valuable human resources and optimistic future plans. This has eventually increased trading within the country as well as with other countries across the globe. This sharp increase in trade has consequently driven the logistic services in the country.

Apart from the growth in economy, increased outsourcing and VAT implementation has also driven the Indian logistic industry. Many multinational companies are outsourcing their logistic services as more and more companies are venturing into the country to source cheap raw materials. These raw materials are then transported to the company’s manufacturing hub for assembly and complete formation. Further to that, the implementation of VAT has reduced the pressure on manufacturers. Earlier manufacturers were forced to open their warehouses across all states in order to avoid double taxation but the phase out of CST has eventually helped them do their business in a friendlier environment.

The need and urgency of the improvement in the logistic industry is greatly felt and pushed by the government. At present there are certain obstacles like poorly developed infrastructure, complex regulatory compliance, and limited utilization of technology on the way upwards. Under-developed infrastructure like roads, communication, and ports is a huge blocking obstacle in the path of success but the government is going deep into the matter to resolve these hampering issues and heighten the reach of the industry.

With improvements in infrastructure and optimal utilization of technology, the future of logistic industry in India seems to be bright. It is believed that both the public and private sectors are marching ahead to introduce more number of logistic hubs, parks, and warehouses. Both the sectors are taking initiatives to make the entire system more convenient and efficient at a rapid pace.

Apart from this Indian Railways, air transport, and marine transport are all contributing to the growth of logistics. Research has revealed that the country’s air cargo is predicted to grow at 11.5% over CGAR (Compound Annual Growth Rate). The amount of cargo shipped through the marine transport is also growing significantly. Furthermore, Indian Railways is contributing significantly in a way that it is taking initiatives to divert the traffic of road transport to rail. This will help to streamline the supply chain and also save a lot on time and cost.

Everything is expected to fall in place within two to three years and the logistic services in India will then be worthy of recognition all over the world.

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