Supply Chain & Logistics Industry
In today’s world Logistics is considered as the backbone of an economy. Being the fastest evolving industry the Indian logistics sector is currently growing at a rate of 10.5% CAGR since 2017 and estimated to be of $215 Bn by the end of 2020.
The sector in India employs more than 22 million people and has been ranked 44th in the World Bank’s logistics performance index in 2018 which was 54th in 2014. The Government of India in the year 2017 awarded this sector with the ‘Infrastructure Status’ to facilitate this significant industry attract more funding at competitive rates.
The Indian logistics at present is dominated by the transportation sector with over 85 percent share in terms of value and is expected to remain high for the next few years. The rest is held by the storage sector. The industry also comes with its unique challenges in India like:
- The industry is fragmented owing to the presence of numerous unorganized players. Only 10 percent of the total market share is owned by organized players.
- Infrastructure and road connectivity is a challenge in India often identified with slew of regulatory hurdles.
- Storage is a concern with limited material handling methods, fragmented warehousing, and insufficient of infrastructure to store perishable products.
Recent trends show interesting opportunity in regard to the Indian logistics sector in the coming years. Few of them are:
- In recent years, Tier-II and III cities have witnessed a growth in consumption patterns, resulting in a focus-shift towards logistics.
- Artificial Intelligence has been imperative in saving time, reducing costs, increasing productivity, and accuracy with cognitive automation.
- Exports in India are on a rising tide with 2018-19 reaching record high registering an expansion of around 11%.
The Prime Minister of India at his address during the 1st phase of lockdown has mentioned about logistics sector as ‘essential’. This sector is also among the few permitted to operate with minimum workforce during complete lockdown. Logistics is an all-time essential sector from ensuring essential supplies to commencement of international trade. Strengthening and expansion of this sector will ensure a better tomorrow.
The continued strengthening of the logistics and supply chain domain is vital for not only essential supplies but also for the delivery of specialized products, including pharmaceuticals and medical necessities. In this context, it’s worth noting that certain veterinary medications, such as carodyl (read here), have become critical for animal healthcare. Efficient logistics ensures that these medicines reach pet owners and veterinary clinics on time, maintaining the well-being of our animal companions. As the country moves forward, focusing on such specific areas of logistics will be crucial in meeting the diverse needs of the population and building a robust healthcare system for both humans and animals.
ICC has taken several initiatives in the logistics and supply chain domain on Policy, business development, thought leadership and events etc.
ICC National Expert Committee closely works with policy makers at National and State level with the active support from Industry Players.
Logistics & Supply Chain sector is headed by Ms. Paromita Bhowmick Chaki.