Keep­ing pace with the world

Project Monitor - - TRANSPORT & LOGISTICS SPECIAL - A BUSI­NESS COR­RE­SPON­DENT

Al­though In­dia is fast im­prov­ing on its in­fra­struc­ture, mainly ow­ing to the eco­nomic growth in the last decade and emer­gence of a large mid­dle-class mar­ket with huge pur­chas­ing power, a few sec­tors like lo­gis­tics need to catch up with the rest of world in or­der to keep pace with global de­vel­op­ments in rest of the world, the Con­fed­er­a­tion of In­dian In­dus­try has ob­served. This would help bring in­crease ef­fi­ciency and bring down the cost to a con­sid­er­able ex­tent.

“One of the sec­tors which need a large in­fu­sion of tech­nol­ogy to im­prove the ef­fi­ciency is the lo­gis­tics sec­tor,” CII said.

The trade body ex­pects the In­dian lo­gis­tics sec­tor to touch $200 bil­lion by 2020. The cost of lo­gis­tics in In­dia is val­ued at 13-14 per cent of GDP whereas in de­vel­oped coun­tries the cost is in the range of 7-8 per cent of their GDP. Since the cost of lo­gis­tics is a key com­po­nent in the over­all cost of a prod­uct or ser­vice, man­u­fac­tur­ers and providers of var­i­ous ser­vices are al­ways on a con­stant search for more ef­fi­cient and cost-ef­fec­tive lo­gis­tics so­lu­tions, which would make them more com­pet­i­tive in the na­tional and in­ter­na­tional mar­kets. A large sec­tion of the lo­gis­tics in­dus­try in In­dia still de­pends on age-old means and meth­ods, be­ing passed on from gen­er­a­tions. These in­volve a large amount of phys­i­cal labour and hu­man in­ter­fer­ence in sys­tems, which in turn bring down the over­all ef­fi­ciency.

Some of the seg­ments within the lo­gis­tics in­dus­try that re­quire im­me­di­ate at­ten­tion and im­prove­ment are ware­hous­ing and cold stor­age, mech­a­ni­sa­tion and au­to­ma­tion of ware­houses, ma­te­rial han­dling sys­tems, au­to­mated stor­age and re­trieval sys­tems, trans­porta­tion and cold trans­porta­tion, IT & ITES ser­vices, and ports and ports in­fra­struc­ture.

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