According to data published by Indian Investment Grid, an initiative of the Ministry of Commerce and Industry, in 2021 India’s logistics sector was valued at $160 billion and employed over 22 million people directly. It is expected to grow at a CAGR of 10% to $215 billion by the end of 2022.
However, this huge and segmented industry poses many challenges – bad roads, congestion at multiple checkpoints, lack of adequate warehousing space, poor air and seaport capacities, and inadequate transport systems like railways, waterways, and aviation.
Hike in fuel prices leads to increase in transportation and freight costs. Changes in economic and government policies also result in inflation of prices - impacting costs and disrupting supply chains. What’s more, regulations imposed by national, regional, and local authorities differ from city to city, hindering the creation of a national network for seamless movement of cargo.
It is hoped that the government-initiated National Logistics Policy (NLP) will make a difference, while the Gati Shakti Master Plan for multimodal connectivity, dedicated freight corridors, and tech-driven warehousing with seamless logistics infrastructure will help cut down logistics cost and reduce turnaround time. Relying on technology for various logistics processes will also help identify the issues and ease out the inefficiencies.
L&ST spoke with a few industry players to get insights on this important industry – including challenges in ODC transport, Crane applications and their rental costs, the need to use air charters to reach remote regions, and 3Pl Logistics for transportation of Break Bulk Cargo.