Row­ing through trans­for­ma­tion

Frost & Sul­li­van re­port, ‘Strate­gic In­sights on the Lo­gis­tics In­dus­try 2016’, states that govern­ment re­form ini­tia­tives, pro­mo­tion of man­u­fac­tur­ing and trade, is im­prov­ing in­vest­ment cli­mate and shall trans­form the in­dus­try.

Cargo Talk - - Report -

The In­dian lo­gis­tics In­dus­try is ex­pected to grow at a CAGR of 8.6 per­cent be­tween 2015 and 2020, which grew at a CAGR of 9.7 per­cent dur­ing 2010-2015. Trans­porta­tion and com­mu­ni­ca­tion ac­counted for seven per­cent of the na­tion’s GDP in 2015, ac­count­ing for around US $130.44 bil­lion. The key driv­ers of this growth are in­fra­struc­ture in­vest­ment as­so­ci­ated with ports, air­ports, and other lo­gis­tics de­vel­op­ment plans. Sea freight in In­dia is ex­pected to grow by 5.7 per cent driven by the de­mand from Asia, Eu­rope, and Africa. Con­tainer­ised cargo ton­nage is likely to cross 123 mil­lion tonne in 2016 and is likely to grow by four per cent driven by port mod­erni­sa­tion and ex­pan­sion plans.The road freight vol­ume in In­dia is fore­casted to be 2211.24 bil­lion freight tonne kilo­me­tre grow­ing at 4.7 per cent. The Frost & Sul­li­van anal­y­sis finds that the lo­gis­tics in­dus­try is ex­pected to in­crease by over eight per cent dur­ing the fore­cast pe­riod. The fac­tors that can drive this growth in­clude, high costs of main­tain­ing in-house lo­gis­tic ac­tiv­i­ties, ris­ing com­plex­ity in sup­ply chains due to growth in global sourc­ing and dis­tri­bu­tion prac­tices, among oth­ers.

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