Keeping pace with the world
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.