National Logistics Day: The Indian Chapter India's logistics sector stands on the brink of transformation, driven by cutting-edge technologies, advancements, and robust infrastructure development.
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From e-commerce deliveries to supply chain management, the logistics team plays a vital role in getting products to our doorstep safely and efficiently. With the changing landscape in the logistics sector, we take a deep dive with the Indian context. Today, June 28th, marks National Logistics Day. This special day is dedicated to recognizing the tireless efforts of logistics professionals who work diligently behind the scenes to ensure the timely and safe delivery of goods and services.
Advanced tech in logistics
India's logistics landscape is on the cusp of a revolution. A recent report unveiled at logistics fair, by LogiMAT India, predicts the freight and logistics market to soar at an impressive 8.8 per cent annual growth rate, ballooning from $317.26 billion in 2024 to a staggering $484.43 billion by 2029. This upsurge is fueled by the seamless integration of innovative technologies, such as automation, advanced intralogistics, and smart transportation management. As the logistics sector cannons toward a transformative era, the possibilities seem endless.
India's logistics sector stands on the brink of transformation, driven by cutting-edge technologies, advancements, and robust infrastructure development. The industry is at an evolving juncture where organisations are unlocking unprecedented efficiency and savings in time, money, and manpower by incorporating AI and ML-powered technologies into their logistics operations.
"We also anticipate the 2024 Union Budget policies prioritising strategic investments in advanced technology, promoting green logistics, and enhancing digital infrastructure. Such initiatives are vital for ensuring industry resilience, addressing emerging challenges and propelling India towards global leadership in a tech-driven, sustainable logistics landscape," Nishith Rastogi, founder & CEO of Locus.sh.
The integration of cutting-edge technologies in logistics is expected to propel the industry to unprecedented heights, unlocking transformative gains in operational efficiency, customer satisfaction, and financial returns.
The infra push
Guided by the 'Viksit Bharat 2047' roadmap and a 'whole-of-government' approach, infrastructure development in key economic zones is set to strengthen significantly. Initiatives such as the Prime Minister's Gati Shakti Plan and the National Logistics Policy streamline operations, position India as a leader in efficient cargo movement. Ranked 38th globally in the World Bank's Logistics Performance Index Report (2023), India's logistics sector plays a central role in its economic resurgence, with projected growth to USD 591 billion by FY272. "The logistics industry has evolved with a customer-centric approach, driven by analytics, real-time data; these advancements ensure seamless deliveries, support SME integration into global supply chains and enhance trade by optimising routes, reducing fuel consumption, and boosting customer satisfaction," Nitin Navneet Tatiwala, VP marketing and airline networks, FedEx, MEISA.
The logistics sector has received a major push in the Interim Budget 2024 as the government plans to set up three major economic railway corridors to reduce congestion and logistics costs in India.
Industry stakeholders welcomed the government's plans but have highlighted that certain areas still require attention. Finance Minister Nirmala Sitharaman said in her budget speech that three major economic railway corridor programmes will be implemented. These include energy, mineral and cement corridors, port connectivity corridors, and high-traffic density corridors. "These dedicated corridors will facilitate faster movement of freight and improve turnaround times, reducing logistics costs for India. Together with dedicated freight corridors, these three economic corridor programmes will accelerate our GDP growth and reduce logistic costs," she added.
"As we approach the Union Budget 2024-25 announcement; we, at TCI are optimistic about the government's commitment to bolstering the logistics sector. An emphasis on infrastructure development, streamlined regulations, upskilling programs for the workforce and enhanced investment in technology will be pivotal in driving efficiency and sustainability in our industry. We look forward to policies that support innovation, facilitate ease of doing business, and create a robust framework for the growth of the logistics and transportation sector, ultimately contributing to the nation's economic resurgence," said Vineet Agarwal, MD, Transport Corporation of India (TCI)
