India’s logistics market seen growing at a CAGR of 8-9% in the next few years: Report
The Indian logistics market, which was valued at Rs 9 trillion in FY23, is expected to expand to Rs 13.4 trillion by FY28, recording a compounded annual growth rate (CAGR) of 8-9%, according to a report by Motilal Oswal. This growth is attributed to structural changes, advancements in technology, and government initiatives aimed at optimising logistics costs and enhancing infrastructure.
The National Logistics Policy aims to streamline India’s logistics sector by increasing the share of railways in freight movement through the development of dedicated freight corridors (DFCs), as also improving road infrastructure and expanding inland waterways. Additionally, the government’s focus on port privatisation has resulted in improved infrastructure and operational efficiency, while benefitting major operators. Currently, India’s logistics cost comes at 14% of GDP, considerably higher than the 8-9% in developed economies, as per a report.
Source: Exim News Service: Mumbai, Oct. 7