Technology Tools & Solutions

To develop India’s Logistics sector, focus on new technology, improved investment, skilling, removing bottlenecks, improving inter-modal transportation, automation, single window system for giving clearances, and simplifying processes are required, observes Gurcharan Singh, Founder, LogixGRID

Where does India’s Logistics Industry stand vis-à-vis the world?

Logistics costs in India exceed those in other countries. The figure is higher compared to 10-11 percent for BRIC countries, and 8-9 percent for developing nations. USA spends 9.5 percent of the GDP on logistics, while Germany is even more competitive with a share of 8 percent. Higher logistics costs in India could be ascribed to the lack of efficient inter-modal and multi-modal traditional systems.

As of now, the logistics sector is dominated by transportation, which has over 85 percent share in value terms; its share is set to remain high for the next few years. The rest 15 percent share is borne by storage. The sector is employment intensive, absorbing 22 million people.

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