This sector provides employment opportunities in various administrative and managerial roles in manufacturing, retail, supply chain management, transportation, energy resources and other companies.
Logistics & Transportation sector is of high importance as it drives the supply of goods & services from one place to another and the speed, efficiency and money flow in this domain has a direct impact on the industries and eventually the economy.
The last two decades have seen Indian Logistics & Transportation Sector grow from a dedicated warehousing and transportation oriented service to a value added service like domestic/international freight forwarding, customs clearance, reverse logistics etc.
- Streamlining of Indirect Tax Structure
- Infusion of Qualified Workforce
- Globalization of Manufacturing System
- Increased Demand of 3PL Services
- Logistics Managment as a Strategic Tool
- Investments in Transportation Infrastructure
Constituents of Transport & Logistics Sector
- Road Transport : India, with second largest road network in the world, caters to approximately 65% of the freight and 85% of the passenger traffic. The Road transport dominates the transport sector, with 4.6% share in India’s GDP.
- Rail Transport : The Indian Railways controls the Asia’s Largest and World’s second largest rail network, which is divided into 16 different zones.
- Air Transport : The Air transport has seen a considerable increase in total cargo traffic in a decade or so. The cargo carried by India, accounts for 2% of the international trade. India is currently the world's 9th largest Aviation market. Air passenger traffic in India is growing at a tremendous pace. Freight traffic is expected to reach five times the current levels by 2035.
- Marine Transport : The Indian Marine Transport has 12 major ports and 200 non-major ports. The Port & Shipping sector is projected to attract significant private investment due to robust port infrastructure, strong growth potential, a favorable investment climate and sops provided by State Governments
The Indian Logistics sector, valued currently at ~US$ 125 billion, is projected to grow at 10-12% for the next 3 years. As per estimates, the industry employs over 45 million people and is growing at the rate of 15% pa, with sub sectors growing at 30-40% pa.