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Several challenges remain before the Indian logistics sector. Infrastructure and integration of the nation’s logistics network remain the two most critical areas that require attention.
The growth of infrastructure, since 1991, has been quite extensive (covering a wide geographical area) as well as strategic – linking the key industrial, consumption and transshipment centers.
Indian logistics market remains fragmented on these counts and the national market (as well as service) does not appear as one integrated entity.
Harmonization of taxes, procedures and policies across States is required to facilitate a seamless flow of goods and services.
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Another area that will see tremendous growth is outsourcing of logistics service.
While logistics outsourcing has been in existence for several decades, it was limited to transportation and warehousing.
Post-liberalization, the country has seen outsourcing of value add services like freight forwarding, fleet management, import/export and customs clearance, order fulfilment, consulting services like distribution network planning etc.
These are early years for the 3PL service providers. Lack of trust and awareness as the key hurdles to its growth.
Logistics infrastructure is severely lagging the country’s growth For businesses to prosper, existing logistical challenges must be overcome and the foundation of India’s supply chains must be built. |
