With a market size of US$215 billion, India's logistics industry is developing rapidly

Recently, according to foreign media reports, according to Indian survey data, the scale of India's logistics market is 215 billion US dollars and will grow at a compound annual growth rate of 10.5%. In addition, it is expected that by 2025, the online vertical market of India's logistics industry will grow to 30 billion US dollars.

During the epidemic, due to the slowdown in international trade, manufacturing and non-essential businesses, India's logistics and supply chain were also greatly affected, resulting in many people losing their jobs, collapse of the supply chain network, and a large number of vacant warehouses.

As the epidemic situation in India continues to improve, logistics and supply chains are also showing signs of recovery. First, due to the continuous rise of e-commerce, the demand for home delivery logistics is in a steady upward state. This has led to an accelerated shift in logistics to consumer-oriented services, coupled with India’s recent joint launch of the “last mile delivery” program with Amazon , which has promoted the development of India’s warehousing, packaging, just-in-time delivery and reverse logistics industries.

Secondly, due to the increasing digitalization of society, the popularity of smartphones and the adoption of cashless online transactions, more and more consumers are choosing e-commerce as their preferred method of purchase. According to a report released by ICICI Securities in April 2021, India's second- and third-tier cities now account for 46% of total e-commerce. In addition, in the first quarter of 2021, online spending per customer in second- and third-tier cities accounted for 43% of sales value, and this trend will accelerate further during the festive season.

Lastly, while COVID -19 has disrupted multiple business and lifestyle trends , it has also given rise to new innovations across industries. In the logistics and supply chain space, these innovations are driven by technology adoption and operational modifications. Opting for and developing an omnichannel network has been one of the major developments in India . This new model has been helping the Indian logistics industry drive delivery optimization , better inventory management, shorter delivery turnaround time, and better customer support. In the upcoming festive season, this model will not only help manage demand but also help improve supply chain network efficiency.

India

transportation

logistics