LOGISTCIS
INDUSTRY IN
INDIA
WHAT IS LOGISTICS?
"Logistics" was initially a military-based term used in reference to how military
personnel obtained, stored, and moved equipment and supplies.
In the current world, Logistics is the process of planning and executing the efficient
transportation and storage of goods from the point of origin to the point of consumption.
The goal of logistics is to meet customer requirements in a timely, cost-effective manner.
LOGISTICS INDUSTRY IN INDIA
India is one of the fastest growing economies in the world. Increase in the transportation
networks along with the expansion and construction of highways, railways and
airports is transforming India into a global transport hub
The logistics sector is expected to grow at a compound annual growth rate (CAGR) of
15.5% between FY2019 and FY2024, according to various market research.
India’s logistics sector is estimated to account for about 14.4% of GDP.
Logistics sector has employed over 20-25 million people across job roles in tier 1, 2 and 3
cities and continues to create job opportunities for the unorganised workforce in India.
TYPES OF LOGISTICS SERVICES
There are many different types of logistics services available in India. Some of the popular
logistics services available in India are listed below:
1. Transportation Logistics
2. Warehouse Logistics
3. Distribution Logistics
4. Supply Chain Management
5. Project Logistics
6. Third Party Logistics
KEY TRENDS IN LOGISTICS INDUSTRY
The logistics sector in India is becoming more demanding because of the following trends that
are happening in the market. The trends are listed as follows :
RISE OF E-COMMERCE - After the Covid pandemic, E-commerce is booming in India and this
has created a increase in demand for logistics services.
RISE OF LAST-MILE DELIVERY - Last-mile delivery is becoming increasingly important in the
logistics industry, as companies strive to get orders delivered to customers as quickly and
efficiently as possible.
GROWTH OF EXPRESS DELIVERY - With customers expecting faster delivery of their goods,
express delivery is another area where the logistics companies are thriving.
RISE OF REVERSE LOGISTICS - Companies are now more focused on ensuring that returns
are handled efficiently.
LOGISTICS COMPANIES IN INDIA
The Size of Logistics Industry in India is $215-billion. The logistics industry in India is highly
fragmented with a large number of unorganized players. Only 10-15 per cent of the $215-
billion Indian logistics market is owned by organised players.
Some of the major logistics companies in India are listed below :
1. Safexpress
2. Blue Dart
3. Delhivery
4. Gati
5. Ecom Express
6. Shadowfax
7. XpressBees
8. Ekart Logistics
LOGISTICS COMPANY COMPARISON
PIN CODE
COMPANY VALUE ADDED SERVICES FOUNDED EMPLOYEES
REACH
ROUTE OPTIMIZATION, GPS
SAFEXPRESS 31000+ 1997 2400
TRACKING, SECURED DELIVERY
SCHEDULED DELIVERY, EXPRESS
BLUE DART 35000+ DELIVERY, WEATHER PROOF 1983 12200
PACKING, COD
HYPERLOCAL DELIVERY, COD,
DELHIVERY 18000+ EXCHANGE LOGISTICS, EXPRESS 2011 10000+
DELIVERY
EXPRESS DELIVERY, AUTOMATED
GATI 17000+ 1989 2500+
PROOF OF DELIVERY
CUSTOMER CLEARANCE,
XPRESSBEES 13000+ CONNECTED NETWORK OF 2015 30000+
FULLFILMENT CENTRES
GOVERNMENT INITIATIVES
The Indian Government has initiated a number of plans which will help in the growth of the
logistics industry in the country. The government had made it clear that there goal was to make
India the logistics hub of the world within next 20 years. The policies adopted by the government
to help the logistics sector are as follows :
1. NATIONAL LOGISTICS POLICY 2022 (NLP 2022)
The National Logistics Policy 2022 will establish a single-window e-logistics market and put
an emphasis on developing skills, competitiveness, and employment for MSMEs.
The goal of the National Logistics Policy is to lower the cost of logistics from its current 14% of
GDP to less than 10% by 2022 despite the highly fragmented nature of India’s logistics
industry.
The policy aims to make Indian goods more competitive while also promoting economic
growth and expanding job possibilities.
TARGETS UNDER NLP 2022
The targets set by the Indian Government under
the NLP 2022 are as follows :-
By 2030, India’s logistics costs should be
equivalent to global benchmarks.
Be among the top 25 countries by 2030
according to the Logistics Performance Index
ranking.
Create a decision-support system that is
data-driven for a successful logistics
ecosystem.
As part of NLP, the government will also
develop the Unified Logistics Interface
Platform (ULIP).
2. PM GATI SHAKTI 2021
Prime Minister launched PM Gati Shakti - National Master Plan for Multi-modal Connectivity,
essentially a digital platform to bring 16 Ministries including Railways and Roadways
together for integrated planning and coordinated implementation of infrastructure
connectivity projects.
Economic Zones like textile clusters, pharmaceutical clusters, defence corridors, electronic
parks, industrial corridors, fishing clusters, agri zones will be covered to improve
connectivity & make Indian businesses more competitive.
The multi-modal connectivity will provide integrated and seamless connectivity for
movement of people, goods and services from one mode of transport to another.
The PM Gati Shakti initiative would help accelerate transportation, cut logistics cost, and
bring synergy among ministries
FUTURE OF INDIAN LOGISTICS INDUSTRY
According to India's e-commerce logistics report, in 2021, the size of the Indian logistics
market grew by 4%, and it is expected to grow at a CAGR of 6% approximately from 2022-
27, generating market revenue of USD 556.97 billion by 2027.
The logistics sector currently employs more than 22 million people in India and is expected to
add another 1.2 million jobs by 2025.
With the digitization of the logistics industry, the companies are going to leverage
technologies like artificial intelligence, cloud, automation, robotics, block chain, big data,
and IOT to provide smart and innovative logistics solutions to their customers.
The introduction of the National Logistics Policy along with the PM Gati Shakti Plan will
transform the logistics infrastructure of the country and will make India the logistics hub of
the world in the coming years.
According to IBEF, the Indian logistics
industry is expected to reach a total size of
311.8 billion in 2024 from 193.6 billion in
2019.
According to Research and Markets, the
Indian logistics industry is expected to reach
a total size of 556.97 billion in 2027 from
410.75 billion in 2022. The expected rate of
CAGR is 6.3%
Thank
you!!
