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Logistics - India

Logistics in India - Logistics Expo

India is grooving fast as a business hub for the world and creating immense opportunities for trading to supply and fulfil requirements of the world but Logistics infrastructure of India is still improving to the international standard. Indian logistics industry is expected to grow at 15% to 20% per annum, According to a Cushman and Wakefield report.

India’s need for infrastructure creation in the logistics sector is striking. In just a decade India has seen its economic size more than double to $ 1.37 trillion (2012) and total foreign merchandise trade multiply from 20% of GDP (2000) to 42% of GDP (2014).

Survey conducted by Transport Intelligence (Ti) 2013 ranks India as the second most attractive logistics market in the future after China till date.

As a fast growing economy with one of the largest consumer markets, industries such as automobile, pharmaceuticals, FMCG and retail will drive the demand for logistics in India in the future.

Planning Commission has budgeted for an initial infrastructure investment of Rs. 4.1 trillion (9.95% of GDP) over the 12th Five Year Plan (FYP) period (2012-2017) in order to sustain a real GDP growth rate of 9% over the period. This is almost double the amount proposed under the 11th Five Year Plan (2007-2012).

Regulations around rationalization tax structures, proposed introduction of GST and prevention of overloading are creating a favorable environment in which the sector can flourish.

India spends around 13% of its GDP on logistics, higher than US (10%), Europe (11%) and Japan (10%).