Culling out the untapped potential
Sandeep Harit, Managing Director, Movex Services, talks about the trends and opportunities lying in the industry while highlighting the steps taken to combat the obstacles hindering the growth of the sector.
to eight per cent. However, the cost represents 13-14 per cent of the country’s GDP. The impending is bright after the entry of large third party logistics (3PL) carriers like Federal Express and DHL and the expansion of domestic networks of Indian firms like Gati and other shipping companies is transforming the nature of services and the business practices.
Another trend driving growth in this sector has been the consolidation amongst the logistics player. Mergers and acquisitions amongst Indian and MNC logistics firms is starting to increase the reach of multi-national 3PLs in the domestic market. Growth prospects for the Indian logistics sector looks promising with government’s avowed focus on logistics infrastructure development, numerous policy initiatives in the areas of trade and industry promotion, as well as the much-anticipated GST tax reform. What are the major obstacles hindering the Indian logistics industry’s growth?
Lack of infrastructures at major cargo ports; these must be upgraded per world class cargo