In a rapidly evolving global supply chain landscape, India is poised to emerge as a dominant force, with its logistics sector expected to touch an astounding Rs. 50 lakh crores by 2030. To understand the road ahead, Marksmen Daily Correspondent Neeraj Tiwari caught up with R Sampath Raghavan, Head – Exim & Logistics at Silver Spark Apparel Ltd (A Raymond Group Initiative). In this insightful exchange, he delves into the critical reforms needed, the transformative role of emerging technologies, innovative last-mile solutions, and how India can fortify its logistics ecosystem amid global geopolitical shifts.
India’s logistics sector is expected to reach Rs. 50 lakh crores by 2030. What structural changes or reforms are most critical to achieving this milestone?
Logistics progress in any country goes together with economic development. With India projected to grow into a $26 trillion economy by 2048, the logistics and transportation sector is expected to grow with a CAGR of 4–5%, reaching 15.6 ton-km by 2050. We’ve taken strong initial steps through visionary initiatives like the National Logistics Policy, Sagar Mala, Gati Shakti, and Dedicated Freight Corridors.
The World Bank’s 2023 Logistics Performance Index ranked India 38th out of 139 countries, showing how far we still need to go. The real challenge lies in execution. Without participative collaboration, tech adoption, infrastructure development, transparency, and funding, even the best initiatives can stall.
India has embraced tech in cross-border trade through ICEGATE, ULIP, etc., making doing business easier. But we must fast-track infrastructure with policy reforms that ease land acquisition. Public-Private Partnerships (PPPs), risk-sharing frameworks, and ESG-focused investments are essential to build a future-ready, sustainable logistics ecosystem.
How are technologies like AI, ML, and IoT redefining logistics in India — from demand planning to route optimization?
With Industry 4.0 and now Industry 5.0 (human-machine collaboration), logistics operations have transformed. AI, ML, deep learning, and IoT are significantly improving TMS, WMS, and planning processes.
These tools enhance demand forecasting, reduce inventory pile-up and stockouts, and ensure cost-efficiency. AR/VF combined with IoT has optimized warehouse operations, especially important as e-commerce and Q-commerce demand speed and efficiency.
To increase customer trust, businesses must offer visibility, agility, and transparency. SaaS-based applications integrated with ERPs and transporter portals offer real-time shipment tracking. On the international front, these tools allow customs authorities to conduct early due diligence, enabling seamless movement of goods.
Despite tech advancements, last-mile delivery remains a bottleneck. What solutions or policies can bridge these gaps?
Last-mile delivery has grown in importance with the rise of e-commerce and Q-commerce, especially in Tier 1 cities. However, infrastructure limitations, road conditions, and urban traffic congestion are major hindrances. Additionally, delays at the destination due to inefficient receiving systems lower delivery efficiency.
AI-enabled route optimization has made route planning smarter, reducing both delays and carbon footprints. But we still need better urban planning, dedicated delivery zones, and robust traffic management systems. Adoption of Blockchain can improve real-time supply chain visibility, helping reduce dwell times and optimize transport use.
In the wake of global tensions and supply chain shifts, how can India de-risk logistics while expanding its global footprint?
Recent shocks like Covid-19, trade wars, and geopolitical conflicts have exposed vulnerabilities in global logistics. The ripple effects include higher costs, increased transit times, and unpredictable trade flows. The reciprocal duties announced by the US, for instance, could drastically shift trade routes. India’s main challenge is the lack of advanced marine hubs like Singapore or Rotterdam. Our reliance on feeder vessels makes us vulnerable to blank sailings. We need state-of-the-art ports that can handle larger vessels, coupled with tech integration and regulatory reforms. Given our strategic location between East and West, India can become a global transit hub. We must invest heavily in port modernization and offer faster turnaround to attract global shipping giants like Maersk, MSC, and CMA-CGM. This is how we turn geopolitical risks into strategic opportunities.
