The Indian logistics sector is on a big trajectory growth as it is expected to grow at a rate 8-10 per cent over the medium term. This is an improvement over the compound annual growth rate (CAGR) of 7.8 per cent at which the industry grew during the last five years. The logistics industry of India is currently estimated to be around US$ 160 billion. With implementation of GST the sector is expected to benefit and touch US$ 215 billion over the next two years, as per the Economic Survey 2017-18.
The last couple of years have seen significant development for this industry which is reflected in the global rankings. According to the Global Ranking of the World Bank’s 2016 Logistics Performance Index, India jumped to 35th rank in 2016 from 54th rank in 2014 in terms of overall logistics performance. The report also showed that India’s logistics sector has improved its performance on all the six parameters used in the ranking. This is a huge jump of 20 ranks and clearly indicates the growth of the sector.
The government’s focus going forward is to bring down the cost of logistics which is at 14.4 per cent of India’s GDP at present. The aim is to bring it down to 10 per cent level in the next four years. The Government of India is also taking significant steps by setting up a separate Department of Logistics under Ministry of Commerce and has decided to give a one-time funding of Rs 8 million to the sector for building up initial infrastructure and a phase-wise support of Rs 33.9 million for four years.
Start-ups playing in the digitally-driven logistics and supply chain space in India have attracted investments worth $1.89 billion in 2018. Fuelled by growth in sectors such as manufacturing, retail, e-commerce, food delivery and consumer goods, along with the implementation of the Goods and Services Tax (GST), the demand for logistics and supply chain solutions in India is also on an upward trajectory.
There is a lot of investments (especially Alibaba’s in Xpressbees, Warburg Pincus in Stellar Value Chain, E-Com Express, and Rivigo, Softbank’s in Delhivery, Everstone GLP investment in Logistics Infrastructure Parks, Mahindra’s investments in Porter, Accel’s investment in Blackbucks are notable one that the industry is attracting and as a result of the transformations and changes led by these investments, the industry will stimulate job creation. The experts predict that it can be the largest job creator by 2022.
To meet the supply side NIYA has transformed itself from a traditional logistics training company into a digital skill development logistics and scm company by imbibing and disseminating latest SCM technology to the productive youth population in order to meet the current requirements of this industry.
NIYA will scale greater heights in terms of providing large pool of skilled logistics and scm manpower to the industry and will fill up the vacuum created ever since digital logistics companies came in to existence a few years ago…