The Future of the Logistics Industry in India
Due to the growth of the economy, there has been a rise in the demand for logistics providers in India. In fact, the country has become a prime destination for logistics companies all over the globe. The importance of the logistics industry has increased manifold in the last few years. A significant part of the economy now depends on logistics with the rise is the use of online buying and selling portals. Hundreds of tons of goods are shipped every day via land, sea and air logistics between buyers and sellers. As such, it can be said that logistics has become the backbone of economy.
As the global economy is expecting to see changes in the near future, affects will be felt in India too. Economic and market experts have authored several reports focusing on the potential of logistics operations in India and how it can brace for the future. In this regard, some important points of discussion about the future of Indian logistics have been mentioned below:
Key Challenges That Logistics in India Need to Overcome
One of the major problems that must be focused on immediately is the lack of trained manpower in the logistics industry. IT has vast potential when applied to logistics; warehousing and transportation must have technical support.
Another big issue currently being faced is inadequate infrastructure i.e. transport networks, facilities for warehousing and distribution, as well as insufficient information technology. In order to secure future growth of the industry, these issues must be viewed with critical importance.
The loss or damage of goods as well as the degradation of stocks is one of the major concerns of warehousing in India. The cause behind these is not hard to see. The storage and warehousing facilities available to Indian logistics services is limited. Therefore, the storage technology especially that used for perishables must be advanced and special equipment must be introduced in warehousing.
The importance and the future potential of logistics companies in India has recently become an important topic of discourse. However, the development and research required for its vigorous growth is still missing. The workers need to be trained well and made aware of the technical aspects of the industry.
In recent times, drastic changes have been seen in demands of various echelons of society. The buying capacity of the upper middle class and middle class has improved. This has resulted in a boost in the online retail industry, thus leading to a rising demand for efficient logistics management not only for business to business shipments but also from seller to consumer. All this shows that the potential for the growth of 3PL companies in India is high.
The future of freight forwarders in India in the country is dependent on how the various players in the industry react to the problems mentioned above. The decisions of the future governments too will be a determining factor. The rise in the incorporation of new technologies in logistics will also have interesting effects on the industry that are yet to be seen.