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Logistics Industry In India


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Title: Logistics Industry In India

Logistics Industry Overview
Logistics as a business concept evolved only in
the 1950s. It contributed to solve the
complexity of supplying one's business with
materials, and shipping out products in an
increasingly globalised supply chain. India is
emerging as a one of the world's leading consumer
market with the raise of middle income group,
with an estimation of reaching US 991 Billion in
2020 The logistics sector plays an important
role in accessing this emerging market and
enabling growth.
India has the second Highest largest road network
3.3 Million km, with National Highways
constituting 2 of total road length. Road
network carry 40 of the goods traffic in
India. Government spends 12 of Capital and 3
of total expenditure on roads The Golden
Quadrilateral is a highway network connecting
Indias four largest metros Mumbai, Delhi,
Chennai, Kolkata Road transportation is
currently the most dominant form of
transportation with more than half of the goods
in the country being moved by road, ensuring
reach and easy accessibility to even small
The Indian Railways boasts of being the worlds
2nd largest rail network spread over 81,511 km
and covering 6896 stations. The freight segment
accounts for roughly 2/3rd of the railways
revenue. The ton/kilometer costs for Indian rail
freight at three times that of China. Railway
Rail freight traffic revenues stood at around INR
350 billion in 2006 having grown at around 8
percent in the recent past with the growth in the
last couple of years being around 10 percent.
Low transportation cost as compared to roads.
Though the air freight segment holds a small
share of India's freight market, it is growing at
a fast pace. Air Cargo is a costly mode and its
use is restricted to courier shipments. It is
rarely used for bulk transportation. By virtue
of the level of investments in assets, network
and relationships required to be a player in this
segment, it has traditionally been relatively
more organized leading to greater regard for
manpower development. 87 of total freight
traffic is being handled by airports in metro
cities of India. The quality of Indian airport
is rated 40th among 59 countries.
India, with a vast coastline of 7,517 km handles
95 of Indias foreign trade through its
seaports. It has 12 major ports and 184 other
(minor and intermediate) ports. These 12 major
ports handle about 76 of the traffic Indias
west coast ports handles almost 70 of
traffic India ranks 17th in the world in
shipping tonnage The largest merchant shipping
fleet among the developing countries.
Challenges to Indian Logistics Industry
  • Competition from Indian and Foreign logistics
  • Technology to keep pace with demand for real time
  • Corporatization and lack of skill sets.
  • Shedding local mind-set and move to a global
  • Integration of services and value added services.
  • Funds to fuel expansion growth.
  • Inadequate infrastructure and complex tax laws.

Future Trends of Indian Logistics Industry
Indias logistics sector attracted huge
investments, leaving behind some of the major
sectors including aviation, metals and consumer
durables. The growths in the retail and
manufacturing industry, commodity markets and
development of SEZs have been key factors in the
growth of Indian logistics industry. Logistics
industry is expected to grow annually at the rate
of 15 to 20 The setting up Special Economic
Zones (SEZs) has led to increased logistics
activities around them. Several logistics parks
have come up at locations like Mumbai, Kolkata,
Chennai and Hyderabad because of their excellent
port, rail and road connectivity and are
witnessing significant investment in
infrastructure. The Indian logistics sector
growth depends on the growth of its soft
infrastructure like education, training and
policy framework as much as the hard
infrastructure. The future of the industry is
very bright and is sure to witness exponential
growth in the coming years.
V-Xpress Safe and Reliable For Your Peace Of
  • V-Xpress is Indias leading logistics company
    with premier Express Road, Air and Rail Cargo
    Services organization.
  • Delivering to 4500 locations, covering 24 States
    3 U.T's, 270 Branches and 20 Hubs across
  • We are ISO 90012008 certified and strictly
    follow proven Systems Processes and Compliance
    norms up to our branch levels and have agile
    management practices and technologies.
  • We offer 24X7 door-to-door, time-bound express
    cargo services across the nation. We deliver on
    pre-determined service schedule all across the
    country with our interconnected network of hubs
    at all the major locations.
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