Logistics Sector in India

T. B. S. Anil krishna,

1226112155,

Section-A.

LOGISTICS SECTOR IN INDIA

SUMMARY:

The Emerging Market Survey, 2011 conducted by Transport Intelligence highlights India’s attractiveness as a strong growth area for logistics in the future. The survey found that nearly half of its respondents agreed that India would merge as a major logistics hub in the future. Furthermore, FMCG majors, White Goods and Consumer Electronics firms are also on an expansion spree and are steadily increasing their footprint across the country. Built – to- suit options have been the preferred mode of expansion for most occupiers, with large sized transactions of around 10,000 – 15,000 sq ft of warehousing space being reported in the first half of 2012. Though the India is abundant in Labour, the costs of transporting, warehousing, clearance etc are very costly due to the norms of the Government. The paper discuss about the Logistics sector Development in India, challenges faced by it, the challenges that were overcome and still facing. Third party logistics in India, the companies that are operating in India, Government initiatives, Rules and regulations in the country and the emergence and the potential of Rural Logistics in India.

INTRODUCTION:

The logistics sector in India has today become an area of priority. One prime reason for the same stems from the reason that years of high growth in the Indian economy have resulted in a significant rise in the volume of freight traffic moved. This large volume of traffic has provided for growth opportunities in all facets of logistics including transportation, warehousing, freight forwarding, express cargo delivery, container services, shipping services etc. Various estimates put the market size of the logistics sector in India to be between USD 90-125 billion. Given that the Indian economy has grown to over USD 1.73 trillion these estimates may already be well below the actual size of the industry. Sources also...