Logistics industry expects $215bn in 2021
Indian exporters are facing challenges such as high cost of logistics impacting competitiveness in global market while, at home, they are dealing with underdeveloped material handling infrastructure, fragmented warehousing and lack of seamless movement of goods across modes, among others.
To tackle this challenge of managing warehousing and supply of multi-billion dollars, the Federation of Indian Export Organizations (FIEO) is organizing Mega Logistics Meet in New Delhi from 31 Jan to 2 Feb 2019.
“Logistics is regarded as the backbone of our export sector, and the industry is facing challenges such as high cost of logistics impacting competitiveness in global market, underdeveloped material handling infrastructure, fragmented warehousing and lack of seamless movement of goods across modes, among others,” cautioned N. Sivasailam, Special Secretary (Logistics), Department of Commerce, at the launch of the Logix India 2019 on 27 Nov 2019.
India ranked 44 in the World Bank Logistics Performance Index 2018.
As per the Economic Survey 2017-18, India’s logistics industry which is worth around US$160 billion is likely to touch US$215 billion in the next two years, said Dr. Ajay Sahai, Director General & CEO of FIEO.
Logistics sector is expected to grow to US$360 billion by 2032. High logistics cost reduces the competitiveness of Indian goods both in domestic as well as export market.
“The sector provides employment to more than 22 million people has grown at a compound annual growth rate (CAGR) of 7.8 per cent during the last five years and will grow at a CAGR of 10.5 per cent over the next 5 years,” he said.
Business delegations from more than 20 countries are expected to seek partnerships with their Indian counterparts in the logistics industry which is undergoing landscape change following the implementation of the Goods and Services Tax which has compelled the industry to revamp warehouse and supply chain networks across India.
“Over 20 countries are sending their delegations to explore logistics partnerships with India,” said Ganesh Kumar Gupta, President of the Federation of Indian Export Organizations (FIEO), the meet organizer.
“FIEO is focusing on logistical solutions for ‘Difficult To Reach’ markets and over 100 International delegates are expected to attend Logix India 2019.
“Further development of global logistics would give a boost to external demand thereby encouraging manufacturing and ‘job creation’. This will in turn be instrumental in improving the country’s GDP,” added Gupta.
Logix India 2019 is a major initiative to improve Logistics Cost effectiveness and operational efficiencies for India’s Global Trade, noted Commerce & Industry and Civil Aviation Minister Suresh Prabhu at the launch of Logix India 2019 logo and brochure.
The minister has underlined the urgent need for India to have more robust trade relations with countries in Africa, Latin America, Central Asia, Middle East and ASEAN.
“Logix India will enable effective international trade logistics and help provide efficient and cost-effective flow of goods on which other commercial sectors depend upon,” said Prabhu on 27 Nov 2019. fiinews.com