Government initiatives and growth of Indian Logistics Industry
Logistics industry has to go miles for digitization compared to other industries like media, banking and retail in India. Expansion in logistics and supply chain has become a global phenomenon. The growth shall be highly attributed to the advancement in logistics and supply chain solution that has evolved as a result of enhanced skills, better technology, and improved solutions. The industries who shoulder maximum responsibility for such massive growth rate are manufacturing, e-commerce, healthcare, retail and transportation. A major impetus to the Indian economy that has a considerable impact on its GDP, the logistics and supply chain industry in India is expected to cross USD215 billion by 2020. With that, it shall be counted amongst one of the largest employers employing about 22 million people and helping them rise above the curve.
The main reason is that the Indian logistics sector is highly fragmented, considered the backbone of a healthy economy. Consequently, logistics spending in India is currently 14-15% of GDP compared to 5-6% of GDP spending in developed economies. However, with focused manufacturing initiatives such as the Make in India campaign and the Digital India campaign the logistics industry is also changing at very rapid pace.
Following are some of the changes that has occurred in recent times which clearly shows that logistic industry is entering in to digital era.
- The dawn of technology in the logistics industry has brought refreshing changes and development. Its impact is on the face with the obvious growth of the logistics industry's services and happy customers. In this sector, digitization has the ability to initiate revolutionary transformations.
- Logistics has developed as a third party with giant corporations as its customers with the advent of technology. Now, for transportation purposes, established companies hire logistics from third parties which leads to double fold advantages. First, businesses are gaining more leaders, leading to increased business, while logistics is also emerging as an independent sector.
- Increased customer service has resulted in technologies such as GPS tracking, real-time monitoring, real-time temperature feed. Although, it has also resulted in increased consumer expectations. Perspectives such as timely deliveries, quality deliveries, instant returns and flexibility have now become a key part of logistics.
The Indian logistics industry has formulated new standards of efficiency, safety and security in the wake of technological advances. Automated services and data exchanges have increased this industry's reliability ratio.
Thanks to the government's forward-looking vision and policies, digitalization in India has enjoyed a significant boost. PM Modi's ambition is to create an environment in which both established players and start-ups can provide the immense population with new and more efficient services and catapult the economy into a new phase of growth. Importing the impact on the logistics sector. Apart from several government initiatives taken to ensure sustainability and growth of the logistics & supply chain sector globally many educational institutions have started providing BBA Logistics & Supply Chain Management & MBA Logistics & Supply Chain Management courses which trains the aspirants’ in the same domain.
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