Future Of logistic in India

In India total market size of the logistic and transportation sector is expected to rise to $215 billion by the end of 2020,providing 10.5 per cent combined annual rate of growth (CAGR) over the year of 2017. This sector had also been granted the 'infrastructure status' standing in 2017 once its market size was calculable at $160 billion USD by the government of India. A study by the Asian nation complete Equity Foundation (IBEF) claimed annual investments within the Indian logistic sector to exceed $500 billion by 2025. Between 2018 and 2020, this sector might receive more than 50,000 heavy investment which will further drive Indian logistic sector.Big industry giants are taking deep interest in this field to get heavy returns on their investments. The logistic sector in India absorbed twenty two million individuals in the year 2017 becoming one of the promising sector for employment generation for both skilled and unskilled labours. Employment in this sector is predicted to surge to forty million by 2020. Traditionally,logistic sector in devloping nations including India presented big concerns over its heavy logistic expenditure due to poor infrastrucure.The government of India targets to bring down the cost of logistic in India by 10% of its GDP which currently stands for 14% of GDP which makes it harder for Indian manufacturing sector to compete in global market. Logistics prices in Asian nation exceed those in devloped countries for example logistic prices in BRIC countries share 10-11 percent of their GDP excluding India,United States Of America spends 9% of its GDP on logistic sector whereas Federal Republic of Germany is even additional competitive with a share of only 8% to its GDP.Higher logisitc prices in India can be ascribed due to economical inter-modal and multi-modal ancient systems, As of now, this sector is dominated by transportation that has over eighty five percent share in price terms- its share is ready to stay high for successive few years.The remaining fifteen percent share is borne by storage.The arena is employment intensive, fascinating twenty two million individuals. Logistics prices have a big touching on exports.It's calculable that dynamical logistical prices by ten per cent might widen exports from India by 5 to 8 percent. Currently, the Indian logistic and supply chain business is extremely fragmented and unorganized due to lack of technology penetration and uniform regulations.Due to the presence of various unorganised players within the business, it remains highly fragmented business sectorin India with the organized players accounting for roughly 10 percent of the entire market share which makes India logistic sector even more inefficient. With the buyer base encompassing a large varieties of industries together with retail, automobile, telecom, prescription drugs and significant industries, this business has been progressively attracting significant investments from various players from India and abrod within the last decade. Also, the logistic and supplky chain business faces challenges like under-developed material handling infrastructure, fragmented deposition, multiple restrictive & politics bodies, lack of seamless movement of products across modes, minimal integrated IT infrastructure.So to develop this sector and generate employment Indian logistic companies and Indian government must concentrate on new technology, improved investment, skilling, removing bottlenecks, rising inter-modal transportation, automation, single window system for giving clearances, and simplifying processes would be needed.Thank You.