Bharat Book Bureau

Indian Logistics industry - opportunities galore

Press Release   •   Sep 18, 2010 17:19 IST

HTML clipboardIndian Logistic Industry

India is an integral part of the global village and its reach has augmented exponentially over the last few years, with Indian companies setting up bases abroad and multinational firms entrenching themselves in India. In view of the huge diversity in Indian topography and with business transcending geographies, the supply chain network - the backbone of growth, has become multi-modal and infrastructure dependent. ( )

A well-developed and networked logistics industry is imperative for the success and overall growth of the economy. An efficient supply chain management provides a competitive edge to industry players. Logistics has always been perceived as a cost centre and across industries efforts are made to manage cost rather than use it to enhance customer satisfaction and improve revenue growth. It believes that logistics should be viewed as a strategic tool, which can lead to efficient business operations resulting in higher revenues and better profitability.

It has estimated the overall Indian logistics spend at Rs 2.7 trillion in 2008-09, which includes only primary transport modes and infrastructure, equivalent to around 8.2 per cent of the Gross Domestic Product (GDP). And if the secondary movement (from the hub to the various depots) is also included, this shoots up to 10.7 per cent, which is significantly higher than those of developed nations where it averages 5-7 per cent. Higher logistics spend as percentage of GDP can be attributed to the overall inefficiency in logistics operations, multiple tax structures, inadequate infrastructure and unorganised nature of the industry in India.

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