HYDERABAD: India’s logistics and warehousing sector is transforming. The introduction of a structured Logistics Policy is expected to revamp the sector into an integrated, efficient, cost-effective and technology-driven system with an aim to bring the logistics cost from the current 14 per cent of GDP to 10 per cent by 2022.
The Commerce and Industry Ministry has recently reviewed the draft National Logistics Policy and the proposed action plan for implementation of the policy prepared by the Department of Logistics.
India is ranked 44 in World Bank’s Logistics Performance Index, 2018. Indian logistics market would be around $215 billion by 2020-21 from the current over $160 billion market. In 2017, the logistics sector absorbed 22 million people and employment is expected to surge to 40 million by 2020.
Sandip Patnaik, Managing Director, Hyderabad, JLL, told, “With private equity money coming into the logistics sector, there is a huge potential. Large global logistics companies have also launched funds dedicated to the sector. India needs such infrastructure. The Country will not become a $5 trillion economy without the contribution of logistics sector. All the major developers who were just sticking to residential or mall development are now entering into logistics sector. The thought process of warehousing development and rentals is changing.”
Posted By Daily Shipping Times.