Blooming Indian Logistics and Shipping Industry
Looking into the economy of India, logistics and shipping industry has evolved as one of the fastest growing industry. These services provides variety of trade benefits like material processing, product handling, transportation, inventory management, warehousing, providing inputs of production, etc. With growing domestic and international trade, demand for logistics and shipping services is thriving tremendously in past few years. Firms which earlier used to perform these activities by themselves are now outsourcing for which many IT firms, new startups and business ventures, cargo firms, freight carrier firms, etc. are introduced in Indian economy every single day making shipping and logistics industry a billion dollar industry in India.
Major Transportation Mode Used
Indian government is focused on infrastructure development to make logistics and shipping industry a facilitator of growth. Government is focusing on development of roads since a large chunk of freight interchange in India takes plays through roadways via trucks. Thus, to facilitate easy transportation and creation of north-south corridors, east-west corridors, Central Road Fund has been undertaken. Further, railways are extensively used as an inexpensive mode of transportation of bulky consignments. Government is aiming at development of railways for smooth and easy freight transportation. Further, many projects for development of seaports and airports has also been undertaken to facilitate growth in logistics and trade industry.
Key Drivers of Growth
Major factors that have led to mind boggling growth in the industry are given below:
- Now companies are appreciating the crucial role played by sophisticated logistics and shipping services in minimizing costs and escalating saving. Demand for advanced and expert logistics and shipping services is increasing with rising complications of supply management, rising competition, greater interlinkages between economies, explosion in product diversity, reduction of life span of the product.
- Due to sky high demand from consumers and cost tension, firms are becoming extremely competitive and rivalrous. Thus to dominate the market and distinguish themselves from others firms, companies are using better logistics and shipping services for timely delivery, return pickups, improved inventory organization, etc. in order to ensure maximum consumer satisfaction and revenue.
- With greater globalization and rising interlinkages between economies, demand for logistics and shipping services is also rising which ensures timely delivery, proper market penetration, well-organized supply chain management laden to efficient global trading.
- Evolving online trading and e-commerce industry has provided a boost to logistics and shipping industry. Many Indian online retail websites like Jabong, Flipkart, Amazon, etc. is making optimum use of the services for efficient trade and fast delivery.
- Government is also playing an important role in promoting the industry. Relaxation in trade laws, greater amount of public investment in building infrastructure, permitting privatization of infrastructure industry are contributing significantly in enlargement of logistics and shipping industry.
Fast paced growth has been witnessed in the logistics and shipping industry and is expected to grow even more in future. However, the industry still lacks maturity and sophisticationdue to absence of proper infrastructure.
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Ankur Gupta, Head Marketing & Communications