Logistics infra awaits $6-8bn investment

As the popularity of online shopping in India is going up with time, the e-commerce players have lined-up close to $6-8 billion investment in logistics, infrastructure, and warehousing sector in the next few years, an Assocham-PwC study said in its recent finding. The e-commerce market in India is expected to touch $80 billion by 2020 and currently as there is a very low level of air cargo penetration and only a few airports are equipped to handle large volumes of express delivery parcels and require matching infra facilities. As e-commerce gathers momentum and moves to the tier-II and tier-III cities, there is a dire need of expanding air cargo connectivity to smaller towns. The industry would invest about $8 billion by 2025, the study noted. Innovations are very important in this sector, as the demand is always for more reach and faster shipping at lower costs. The companies will need to invest in automation, while utilizing existing resources well, said Secretary General, Assocham, D.S. Rawat, adding that the overall e-commerce industry, valued at $25 billion has been growing at a compounded annual growth rate of about 35-40% each year, the study said, adding that it is expected to cross the $100 billion mark in five years.

Published: 03 July 2016