Opportunities for the Indian logistics Industry - 2023

31 Jan, 2023 5:34:52 PM / by Transport Corporation of India Ltd


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The pandemic instrumented a radical shift in consumer behavior and preferences. The penetration of the internet and smartphone has given a big boost to this. E-commerce has significantly impacted the way customers shop. The e-commerce market in India is projected to reach US$ 75 Billion by 2022, recording a CAGR of 21.5% over 2021-25, reaching a market size of US$ 120 Billion. Some of key consumption sectors, emerging business models and the required logistics services thereof are listed below:

  1. Growth of Agri Tech
  • Increased logistic requirements owing to organized practices
  • To manage ‘Integrated Supply Chains: farm2fork concepts
  • Distribution of Agri inputs
  • Government induced and Public Sector led investments in ‘Near Farm Infra’ will emerge as a dominant political narrative.
  • State govt. expected to play an important role in mobilizing resources for enablement of cold chains for horticulture, fresh produce and cash crops.


  1. Extended Producer Responsibility
  • Management of Reverse logistics, perhaps with more focus on FMCG, Electronics, Durables
  • Enablement of B2B2C logistics infra for EPR commitments


  1. Growth of Digital Native Business (Quick Commerce)
  • To go hyperlocal
  • Manage frequent and prompt deliveries
  • Re-localize strategy


  1. Focused last-mile deliveries

To improve customer experience Huge investments are being directed towards route optimization, tracking and network building to focus on and meet the last-mile delivery requirements. Today, a growing number of logistics players are strengthening their efforts to provide customers with hassle-free deliveries.


  1. Increase in Return Management/Reverse Logistics

The E-commerce market is experiencing rapid growth. Along with deliveries, there are also innumerable returns required to be catered efficiently by E-commerce partners. Here, technology plays a crucial role in efficiently integrating the inventory management system with the E-commerce platforms. This area will be very critical for all industries because having a smooth returns/recycle logistics system will be necessary in order to comply with ESG norms.

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