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Logistics Services Partnering Opportunities & Outlook for Industries in India 2025
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With The Inclusion Of Warehousing Under Infrastructure Umbrella & Fast Paced Growth Of Transportation Infrastructure Coupled With Make In India Impetus The Time For Logistics Partnering Shall Be Ideal In India Offering Multi Billion Dollar Opportunity For Value Chain
India is on the cusp of witnessing largescale turnaround in its erstwhile laggard segment of manufacturing. Slowly but surely with the intent of Government of India this sector is gaining momentum in the country which is quintessential for a growth market like India to support base for rising infrastructural demand. Even considering a slower growth rate for the country at 7% and the need to reduce TAT between planning and effecting the necessary robust growth for infra development for industry prosperity in India holds a massive business case for logistics integrators. Consequently, with push at the policy level for warehousing part of the logistics value chain getting included under infrastructure the growth pegged is anticipated to be terrific. Indian logistics sector is likely to witness an investment to the tune of worth USD 10 Billion by 2022. As a result, the demand for warehousing space will spike to 300 million square feet by 2022. Consequently, country’s logistics market size is expected to double up to USD 356 billion by 2025 in coming 6 years.
Business Case For Logistic Market In India
- The country’s largely fragmented logistics sector is likely to be at $215 billion by 2020-21 from approximate size of USD 160 billion in 2016-17
- The cold-chain industry in India is forecasted to grow at a CAGR of 19% during the period of 2017 – 2022
- Major transformations in the market, such as the rapid rise of e-commerce, have led to an increased demand for warehousing in the country.
- Logistics start-ups attract USD 1.89 Billion investments in 2018 alone
- Fuelled by growth in sectors such as manufacturing, retail, e-commerce, food delivery and consumer goods, along with the implementation of the Goods and Services Tax (GST), the demand for logistics and supply chain solutions in India is also on an upward trajectory.
- Central Government is planning a network of 35 multi-modal logistics parks under LEEP programme
- India is set to witness investments close to INR 50,000 crore for in creation of warehousing facilities across the country between 2018 and 2020
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