Logistics sector in India has been holding up almost every other industry in the country’s economy. Most businesses need to transport goods and services, and this requirement can only be fulfilled by firms providing logistical services. The Indian logistics market is growing at an exponential rate with improvement in infrastructure & technology.
Influence of logistics sector in India. In India, this figure stands at about 14 - 15%. The network of roads is still in its developing stages, and the rail network is also seeing steady development over time. However, the absence of standardization of assets leads to both lack of productivity as well as inefficient results.
But, the government of India is introducing positive steps that should be pivotal to the improvement of the Indian logistics market 2019.
The scenario of the Indian logistics market in 2019
Recent developments in the logistics market consist of both inward and outward portions of manufacturing and service supply chains.
In recent times, logistics sector has gained a lot of attention from businesses and policymakers. The Indian government, in fact, has set up a different division for the logistics department to work for the betterment of the sector both in the domestic and international spheres. The Ministry of Transport is also playing a major role in influencing the logistics sector through programs like the “Sagarmala” project. The co-existence and unified efforts of these domains are making sure that the logistics market experience steady growth in the future years.
The introduction of GST has also contributed to the betterment of the logistics sector. By means of GST, customers can now move their shipments with a minimum amount of paperwork and avail superfast delivery. The arrival of international logistics in the scene has also ensured a boost of the Indian logistics industry. All these positive influences will lead to a shining rise of the Indian logistics market in 2019 and 2020.
Indian companies are also offering services like Return Management, Fulfillment, Warehousing and 3PL in all the major e-commerce markets internationally. This is creating a larger scope for Indian companies to sell their products in the global market. Indian logistics companies are also creating opportunities for other countries to sell their products in India by offering competent custom clearance and distribution all over the country.
Influence of technology on the Indian logistics market in 2019?
Research is of the opinion that technology will play a highly influential role in the betterment of the logistics industry in the upcoming years.
The development and implementation of IoT service has facilitated the transportation of goods and services over long distances with increased efficiency.
Sensor technology is also expected to improve future logistics since it measures factors like traffic flow, area-specific volume, and the movement of people and infrastructural strength of the area. Support of IoT and data science behind transport and logistics infrastructure furthers the sustainable economic growth.
A futuristic logistics system that is dependent on technology also translates to increased economic opportunities, property value creation, affordable housing, and reduced vehicular usage. This in turn becomes beneficial to the environment, because it results in less transport congestion and air pollution.
Now, the opposite side of the spectrum also holds true.
The rapid development of technology and the birth of the new industry prospects have introduced a high demand for logistics while delivering products and services. A new set of requirements has also arisen from people living busy lifestyles, which has added to the increase in the demand for logistics. For example, home delivery options that you avail when you buy products and services online are possible only due to the betterment of the logistics sector.
Modern technological advancement has not only empowered the Indian logistics industry to meet the new-age demands of quick delivery, but it has also broadened the service geography of this sector. And further development of technology will only lead to a skyrocketing expansion of the Indian logistics market 2019.