Logistics to create 3mn jobs

NEWDELHI: Infrastructure investment and GST implementation will help Logistics industry grow at 10.5% CAGR states TeamLease report titled ‘Indian Logistics Revolution - Big Bets, Big Jobs’.

According to the report, public investment coupled with consumption and industry evolution will drive the growth of the 14,19,000 crore logistics sector. The impact of each of these factors on the seven sub-sectors, namely road freight, rail freight, warehousing, waterways, air freight, packaging and, courier services is likely to result in 3 million new jobs, upping the employment numbers in the sector from 10.9 million (current) to 13.9 million by 2022.

As per the 2018 budget, public investment of Rs 6 lakh crore has been promised to infrastructure, of which 50%, .i.e. INR 3 Lakh crore will be go into building world-class road, rail freight, waterways infrastructure, and state-of-the-art multimodal logistics parks.

This large scale investment is aimed at bringing down the logistics costs from 14.4% of GDP by about 2% over the next 4 years, hence, stimulating the creation of more jobs in logistics sector.

Economic growth, evolving regulation, rising outsourcing and high infrastructure investment are expected to create 1.89 million incremental jobs in the road freight whereas the rail freight sub-sectors will create 40K incremental jobs, over the next 4 years (2018 through 2022).