India's logistics sector projected to reach $600 billion by 2031-32
after close1 source ↓machine-written, see hownot a recommendation
- reaching
- $600 billion by 2031-32
- currently
- $300 billion
- currently contributes
- 13% to India’s GDP
- pegged
- 8% of GDP
- previous estimates
- 13-14%
India’s logistics sector is set to double in size, reaching $600 billion by 2031-32, up from approximately $300 billion currently. This growth is attributed to significant infrastructure development, policy reforms, and enhanced connectivity, according to Subhash Chandra Karol, Director of the Logistics Division at the Department for Promotion of Industry and Internal Trade (DPIIT). The logistics sector currently contributes over 13% to India’s GDP, underlining its critical role in supporting the manufacturing sector, which relies heavily on efficient logistics infrastructure.
The DPIIT's recent study indicates that logistics costs in India are pegged at around 8% of GDP, a notable decrease from previous estimates of 13-14%. This reduction in logistics costs is crucial for enhancing the competitiveness of Indian manufacturing on a global scale, as it allows for more efficient supply chains and reduces overall operational expenses. The synergy between logistics and manufacturing is vital; as logistics improves, it directly supports manufacturing growth, creating a more robust economic environment.
Looking ahead, stakeholders in the logistics sector should monitor ongoing infrastructure projects and government initiatives aimed at further reducing logistics costs. Upcoming policy announcements and investments in technology-driven logistics solutions will be key indicators of the sector's trajectory. The growth of this sector not only promises economic benefits but also aims to create job opportunities and enhance skill development in the logistics domain.
Source: BusinessLine, 20 Oct 2023
Not investment advice. For informational purposes only.