The logistics sector has undergone major change in the last five years, but tech adoption is low, which is mainly implemented by organised players using Grade A warehouses. Such initiatives will catapult Indian economy to the league of developed economies in coming decades, says P.V. Mohan, CEO, Kirby India.
CT Bureau
What are the key megatrends in Indian warehousing and logistics sector?
The Indian warehousing and logistics sector is experiencing transformation driven by several key megatrends thereby creating opportunities for growth and innovation. Some of these trends include e-commerce growth, technological advancements such as IoT, AI, ML, and Blockchain, infrastructure growth such as Bharatmala and Sagarmala projects, DFCs, PMGS, 3PL and 4PL expansion across tier III & IV cities; GST implementation, NLP, cold chain logistics expansion in rural and tier II and III cities, skill development among others, which are key for future growth of Indian warehousing sector.
What are the benefits from govt initiatives such as PMGS and NLP?
These initiatives are poised to benefit the Indian warehousing sector in the next few years by driving overall economic growth through infrastructure development, enhancing efficiency, increasing global competitiveness, reduction in logistics costs, improving supply chain through streamlines processes, technological integration, and focusing on inclusive development. Usage of green practices such as eco-friendly packaging material, EVs, renewable energy, pre-engineered steel buildings for warehouse building infra will enable us to improve sustainability and contribute to environmental conservation. These measures are vital for overall economic growth and the warehousing sector’s transformation in the new few years as it will attract significant investment in the manufacturing and warehousing sectors and give a boost to exports. More government initiatives will catapult Indian economy to the league of developed economies in coming decades.
Will the govt create a conducive climate for automation technology implementation and talent development in the logistics sector?
The sector has undergone a sea change in the past five years, but the adoption of automation technology is low, which is implemented by organised players using Grade A warehouses. With this development, the sector in a short span of time, availability of talent and its development became crucial for overall growth of logistics sector. The government must come up with measures that can create a conducive environment for implementation of automation technology and talent development. Some of the steps for automation include tax incentives and subsidies, loans at lower interest rates, infrastructure development with digitization, logistics parks with smart warehouses, regulatory guidelines and standards, innovations hubs with R&D set up focusing on logistics and supply chain automation solutions, PPP for improving processes and systems, promotional campaigns with respect to benefits of usage of automation technologies, implementation of automation in public warehouses, among others.
