Indian Logistics Sector : Strategic Assessment of Key Elements and Opportunities
Summary :
India is one of the fastest growing economies of the world today. This growth is fuelled by growth in infrastructure, booming manufacturing sector, EXIM trade, retail and agricultural related activities amongst others. Logistics assumes central activity in these growth areas. In India logistics cost, as a proportion of GDP, stands today at 13 per cent which is set to rise as the Indian economy shifts from service oriented economy to that of non-service activities, like, manufacturing and food-processing etc. Rural logistics is set to contribute a larger share to this increase as the infrastructure related to agricultural activity unfolds. With rising disposable income, changing lifestyle, focus of government and private sector on rural and agricultural related activities, the rural logistics has received special attention in the past two to three years. Rural logistics, though lucrative, has a number of challenges which makes it difficult to tap the opportunity. Development of cold chain / warehousing infrastructure, thus, remains at the core of the government’s plan to enable growth of rural areas, provide employment opportunities for rural youths, meet India’s growing food demand etc. Similar is the trend in cities which have witnessed changing lifestyle and shift to consumerism which is further fuelling national intra-trade activity and thus the logistics sector.
Indian economy is opening up and one recent step in this direction is the signing of India-ASEAN trade agreement which will likely to push trade through Eastern Coast of India many folds. The inclusion of India into Nuclear Suppliers Group (NSG) and civilian nuclear co-operation agreements with USA and France, and another one in pipeline with Russia is a pre-cursor to the increase in trade activities with major powers of the world. By 2030, the economic benefits that will accrue to India’s economy, as a result of the nuclear trade could touch US $500 billion. Further, the government is strengthening the infrastructure with over US $70 billion of investment planned till 2012. Logistics will be one sector which will be the backbone of flourishing trade activity and infrastructure development, and will receive special attention by the government / private sector in coming years.
There are a number of activities in the Indian logistics sector which are broadly classified under ‘Hardware’, ‘Services’ and ‘Technology’ related activities, however, not all of these activities are core to the growth of the sector. Indian logistics sector offers unique opportunities which are mainly driven by an opening and near double-digit growing economy, and lack of infrastructure in key areas. It may be noted that although, lack of infrastructure acts as an inhibitor, but the dearth of adequate infrastructure also presents unique opportunities to players who are ready for the situation and understand the market. This report identifies such elements which are growth engines of the Indian logistics sector and focuses on understanding opportunities related within these elements.
For more information, please visit :
http://www.aarkstore.com/reports/Indian-Logistics-Sector-Strategic-Assessment-of-Key-Elements-and-Opportunities-1144.html
Processing your request, Please wait....
