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Logistics Industry in India

India is among the fastest growing economies in the world. An extended and improving transportation network, rapidly increasing number of highways, and ambitious plans for expanding railways are transforming India into a global transport hub. India has a robust logistics industry that supports its GDP growth and government's Make In India programme.

Overview of Logistics Industry in India

The logistics industry in India is growing rapidly, with the country’s economy expanding at a rapid pace. The sector is expected to grow at a compound annual growth rate (CAGR) of 15.5% between FY2019 and FY2024, according to various market research.

The sector employs around 22 million people and is expected to create another 1.2 million jobs by 2025.

The government’s focus on infrastructure development, FDI reform, and the implementation of the Goods and Services Tax (GST) are some of the key drivers of growth in the sector. The government’s initiatives such as Make in India and Digital India are also expected to boost the growth of the logistics industry in the country.

Types of Logistics Services

There are many different types of logistics services available in India. Here is a brief overview of some of the most popular services:

  1. Transportation Logistics: This type of logistics service helps companies to move their goods from one place to another. This can be done via land, sea, or air.
  2. Warehousing Logistics: This type of service helps companies to store their goods in a safe and secure location.
  3. Distribution Logistics: This type of service helps companies to distribute their goods to various locations.
  4. Supply Chain Management: This type of service helps companies to manage their supply chains effectively.
  5. Project Logistics: This type of service helps companies to plan and execute logistics for specific projects.

Common Logistic Functions

There are many common logistics functions that are performed within the logistics industry in India. These functions include transportation, warehousing, and distribution. Each of these functions play a vital role in ensuring that goods and materials are moved effectively and efficiently from one location to another.

Transportation is responsible for physically moving goods and materials from one location to another. This can be done via various means of transportation, such as trucks, trains, planes, and ships. Transportation must be carefully planned in order to ensure that goods arrive at their destination safely and on time.

Warehousing is responsible for storing goods and materials until they are needed. Warehouses must be large enough to accommodate the volume of goods that they will be receiving, and they must be equipped with the proper storage facilities and equipment. Distribution is responsible for delivering goods and materials to the customers or end-users. This can be done via various means of distribution, such as retail stores, wholesalers, or online retailers.

Brief History of Logistics Industry in India

The logistics industry in India has a long and rich history, dating back to ancient times. The first recorded use of logistics in India was in the military campaigns of Alexander the Great, who used elephants to transport supplies and troops across the country. In the centuries that followed, logistics became an integral part of Indian society, with many different types of businesses and organizations using it to move goods and services around the country.

Today, the logistics industry in India is booming, thanks to the country’s rapidly growing economy. This growth is being driven by a number of factors, including the increasing demand for e-commerce and online shopping, the expansion of the retail sector, and the government’s infrastructure development initiatives.

With its vast population and large geographical size, India presents a unique challenge for logistics companies. But as the country’s economy continues to grow, so too will the demand for efficient and reliable logistics services.

Cross Border Logistics Trade in India

As India continues to open up its economy, businesses are increasingly looking to expand their operations beyond its borders. This has created a huge demand for logistics services that can facilitate cross-border trade.

There are a number of factors that make India an attractive destination for businesses looking to set up shop. Firstly, the country has a large and growing population that provides a vast potential market for products and services. Secondly, India’s infrastructure is improving rapidly, making it easier to move goods around the country. Finally, the Indian government is becoming increasingly business-friendly, providing tax breaks and other incentives to encourage investment.

All of these factors are coming together to make the logistics industry in India one of the most exciting and fastest-growing in the world. If you’re thinking of starting a business in this sector, now is the time to get on board.

Future Trends in Logistics Industry in India

  1. Increasing use of technology: The use of technology is increasing in all aspects of businesses and this is also true for the logistics industry. Technology is being used to streamline operations, track shipments, and improve communication between different stakeholders.
  2. Increased focus on supply chain management: With businesses becoming increasingly globalized, there is a need to have efficient supply chain management systems in place. This has led to an increased focus on supply chain management within the logistics industry.
  3. Growing e-commerce sector: The e-commerce sector is one of the fastest growing sectors in India and this is having a positive impact on the logistics industry. The growth of e-commerce is leading to an increased demand for efficient last-mile delivery services.

Key Trends in the Logistics Industry

  1. The rise of e-commerce: E-commerce is booming in India, and this is having a major impact on the logistics industry. Online shopping is growing at an incredible rate, and this is leading to a huge increase in demand for logistics services.
  2. The growth of online grocery shopping: Along with e-commerce, online grocery shopping is also growing rapidly in India. This is another area where logistics companies are seeing a big increase in demand for their services.
  3. The 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.
  4. The growth of express delivery: Express delivery is another area where the logistics industry is seeing strong growth. With customers expecting ever-faster delivery times, logistics companies are working hard to meet this demand.
  5. The rise of reverse logistics: Reverse logistics is also becoming increasingly important, as more and more companies focus on ensuring that returns are handled efficiently.


India’s logistics industry is expected to grow at a compound annual growth rate (CAGR) of 10.5% between FY18 and FY22, according to various reports. The growing e-commerce sector, along with the government’s initiatives such as Make in India and Digital India, are some of the major factors driving the growth of the logistics industry in India. Visit Vakilsearch for legal assistances. 

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