India’s logistics sector is poised for significant growth, projected to reach USD 484.43 billion by 2029, spurred by technological advancements according to a report unveiled at the LogiMAT India 2024 fair. However, to realize this potential, the nation must address key challenges, including infrastructure development, regulatory policies, and tax rebates.
Marksmen Daily correspondent Neeraj Tiwari engaged in a discussion with Ajay Pratap Singh, overseeing North India operations for Bollore Logistics, on the industry’s expansion and the hurdles it faces.
What is your take on future of supply chain and logistics in Indian economy?
India’s logistics industry has witnessed notable advancements, as evidenced by its climb of six places to 38th out of 139 countries in the World Bank’s Logistics Performance Index for 2023, indicating enhanced efficiency and performance. With the Indian logistics market estimated at approximately 274 billion U.S. dollars in 2022 and poised for further growth, the sector’s significance is underscored by its current valuation at USD$ 150 billion, contributing 14.4% to the nation’s GDP.
What are the challenges faced by the logistics sector?
Inadequate infrastructure, rising transportation costs, industry fragmentation, complex taxation, and regulatory frameworks hinder the sector’s efficiency.
What is the role of technology in addressing challenges?
Technology solutions are pivotal in expediting deliveries, enhancing order tracking, providing valuable insights, and ultimately, fostering customer loyalty.
And what is the impact of regulatory hurdles?
Navigating through complex regulatory landscapes leads to delays and increased operational costs, impeding the seamless movement of goods.
How can we improve warehouse management and storage facilities?
Implementing quality training, prioritizing safety, standardizing processes, and leveraging technology can optimize warehouse operations and storage facilities.
And how can we mitigate supply chain Disruptions?
Supply chain disruptions, whether predictable or unexpected, necessitate risk management plans, supplier diversification, enhanced communication, technology integration, and increased visibility to manage and mitigate impacts effectively.
