Ananya Singh, Co-founder, My Skills Academy, a unit of Indus Group Company highlights removal of trade barriers and implementation of FTAs facilitating growth of international trade and creating more opportunities for Indian logistics companies due to which growth is certain.
Ritika Arora Bhola
How do you see the logistics sectoral graph moving in the coming years?
With the expansion of the e-commerce sector, there has been demand for fast and reliable delivery services, which has led to a surge in air cargo and logistics services. The Indian government has launched several initiatives to boost the logistics industry, such as the implementation of the GST and the National Logistics Policy, which aim to streamline supply
chain ops and reduce transportation costs. The development of new airports and expansion of existing ones in India may increase air cargo capacity and improve the sector’s efficiency. Furthermore, adoption of new technologies such as Blockchain, AI, and the IoT is likely to drive innovation and improve the overall efficiency and transparency of logistics operations.
What, as per you, will be the key growth drivers?
Globalization: The increasing interconnectedness of the world economy has resulted in the growth of global trade, which requires efficient and reliable logistics services to transport goods across the borders.
Infrastructure development: The development of transportation infrastructure such as airports, seaports, and highways is not only crucial for the growth of international logistics, but also enables the smooth flow of goods across the borders.
Trade liberalization: The removal of trade barriers and the implementation of Free Trade Agreements (FTAs) have facilitated the growth of international trade, creating more opportunities for logistics companies.
Consumer demand: The changing preferences of consumers such as the demand for eco-friendly and sustainable products have created new opportunities for logistics providers to offer specialized services. Overall, these drivers are expected to continue to shape the growth of the international logistics industry in the coming years, creating new opportunities and challenges for logistics providers.
What are the crucial areas of concern?
Regulatory compliance: The complex and constantly changing regulations governing global trade and transportation create challenges for logistics providers, particularly with regards to customs clearance, documentation, and compliance with trade and transport-related regulations.
Infrastructure limitations: Inadequate transportation infrastructure, particularly in emerging markets, can lead to delays and increased costs, making it difficult to provide reliable and efficient international logistics services.
Security: The movement of goods across the borders is vulnerable to security threats that can result in significant losses for logistics providers and their clients.
Supply chain visibility: Lack of visibility and transparency in the supply chain can make it difficult to track shipments and identify potential disruptions, resulting in delays and increased costs.
Cost pressures: International logistics can be expensive due to factors such as the transportation costs, customs duties, and taxes pressurizing logistics providers to maintain margins.
Sustainability: The environmental impact of logistics operations, particularly with regards to carbon emissions and waste, is a growing concern for logistics providers and their customers. To address this challenge requires significant investment in new technologies and processes.
Govt has allocated Rs. 74,000 crores for improving logistics infra. How to do you think it will boost growth?
The allocation of 74,000 crores by the Indian government to improve logistics infrastructure is expected to have a positive impact on the growth of the logistics industry in India.