This column is authored by Mukesh Singh, founder and chairman of Logisticmart
Logistics, without any doubt, is a pillar of India’s economy. It provides a cost-effective transportation of goods to different regions of the country. The logistics industry in India is scaling new heights in terms of growth and technological advancements in this field. The logistics space is getting highly competitive with the entry of many new companies in the market, bringing new ideas and technologies to benefit the customers.
Integration of technologies helping logistics industry
The sector, particularly the shipping and truck hire service providers are now spending a significant amount of money on integrating latest technologies like cloud computing, Internet of Things (IoT), robotics and many more. By deploying these technologies, the companies are now able to streamline their business operations, get live data and get constant updates about the movement of the goods.
GST can prove to be a game changer for the logistics sector
When the GST would be rolled out this month, then you will begin to witness immediate positive impacts. First of all, it will reduce the amount of paperwork required to transport the goods as all transactions will be digitized. There will be uniform toll rates across the country and waiting time at the toll gates will be reduced drastically. This will ultimately result into the faster goods transportation.
Challenges hindering the industry’s growth
There are many problems hindering the growth of logistics industry in India. Several taxes, poor infrastructure, lack of trained manpower, inadequate warehousing facilities, unorganized distribution channels, etc plaguing the logistics industry. After GST, I hope to see some of these problems diminish, but the companies involved in this business (whether small or big) need to formulate some strategies to overcome these challenges and grow their business.
Positive Figures Bringing Cheers to Logistics Industry
According to the estimates provided by The Associated Chambers of Commerce and Industry of India (ASSOCHAM), the growth outlook of India’s logistics sector is very positive. It is expected to become a $307 billion industry by the year 2020. The good news is with the development of new highways, roads, logistics parks, etc and injection of fresh investments, the industry is expected to grow at the Compound Annual Growth Rate (CAGR) of 16% between financial year 2016-2020. That is not all, as with the coming up of Goods and Service Tax (GST) and government’s new infrastructure reform schemes, it will create new opportunities and push growth.