Logistics Industry Overview

Global Logistics Industry includes all activities of the supply chain such as transportation, customer service, inventory management, the flow of information, and order processing. Other activities of the supply chain are warehousing, material handling, purchasing, packaging, information dissemination, and maintenance among others. The Logistics market in terms of revenue was valued at US$ 8185.46 billion in 2015 and is expected to reach US$15522.02 billion by 2023, growing at a CAGR of 7.5% from 2015 to 2024. The market in terms of volume was valued at 54.69 billion tons in 2015 and is expected to reach 92.10 billion tons by 2024 growing at a CAGR of 6% from 2016 to 2024.1

" The Indian logistics sector is valued at USD$ 354 billion, contributing 18.4 % of the country’s GDP. With the easing of FDI norms, the proposed implementation of GST, increasing globalization, growth of e-commerce, positive changes in the regulatory policies, and government initiatives such as “Sagarmala”, “Make in India”, “Gati Shakthi” the sector is expected to touch $450 billion by 2026-2027. In the World Bank’s Logistics performance ranking 2016, India’s ranks 38 in 2023-2024. Out of this USD 150 billion logistics cost, almost 99% is accounted for by the unorganized sector (such as owners of less than 5 trucks, affiliated to a broker or a transport company, small warehouse operators, customs brokers, freight forwarders, etc.), and slightly more than 1%, i.e. approximately USD 1.5 billion, is contributed by the organized sector. However, the industry is growing at a fast pace and if India can bring down its logistics cost from 14% to 9% of the GDP (level in the US), savings to the tune of USD 50 billion will be realized at the current GDP level, making Indian goods more competitive in the global market. Moreover, growth in the logistics sector would imply improved service delivery and customer satisfaction leading to the growth of export of Indian goods and potential for the creation of job opportunities."

It is estimated that the total workforce will increase from the current 22 million to over 31 million by the year 2022. That means this sector alone will generate additional requirements of over 9 million people across all the modals-roads, railways, ports, and aviation. Government and associated stakeholders including sector skill councils, training institutions, and logistic firms will need to ramp up their training capacity to cater to the growing training needs of the sector. It will also involve various efforts such as:-