The past year has been a significant one for the logistics sector and we expect the momentum to continue in the current & upcoming years as well. With greater export volumes and improved connectivity between manufacturing centers, the logistics volumes have been on the way up. Changing consumption patterns post the pandemic resulted in increasing demand for D2C/quick-commerce & omni-channel. Hence, the increased warehousing demand. Logistics players have continued to innovate & re-design supply chains through tech-interventions, keeping the ‘ESG’ aspect in mind. Formalization of the economy is leading to opportunities for organized players like us.
As digitalization is on the increase; supply chains becoming complex with the need to develop alternatives and redundancies, corporates are banking upon LSPs to provide key inputs for their decision making.
Government of India’s initiatives, like Make in India, PLI schemes, increased spending on capex, programmes like Gati Shakti, MMLP, the newly launched National Logistics Policy – it’s subsets – ULIP & ELogS have helped and will result in benefits for logistics industry by continued infrastructure development and overall logistics cost reduction.
We expect the forthcoming budget to provide a balance between the economic growth priorities and inflation concerns, in an all-encompassing manner. The momentum of growth at which India has come up post the pandemic cannot be weakened. We believe that the budget 2022 will be very carefully structured to sustain the growth momentum and continued infrastructure development, irrespective of the ups and downs. As the government’s vision to ease supply chain bottlenecks is quite evident in the scale of decisions and initiatives which have been undertaken in the recent past. The continued focus on execution of specific strategies will improve global competitiveness. Reducing logistics cost and creating a technology-enabled structure will help to achieve the target of positioning India among the top 25 countries in the Logistics Performance Index. In addition, emphasis on upskilling programs like Gati Shakti Vishwavidalya will help the logistics sector contribute its best in India leading the Industrial Revolution 4.0 & 5G era.
As the overall economy is facing inflationary pressures, growth will be less due to base effect, but certain segments like mobility, industrials, chemicals, etc. will continue to boom. While the potential for improvement and tapping resources is huge, the development initiatives in the Indian logistics sector are indicative of an across-the-board commitment to growth in long-term. As quoted in the LEADS 2022 report, a strengthened logistics ecosystem is going to form the backbone of India’s USD 5 trillion economy vision.
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