India – Future of Logistics
November 11, 2005 by Splatty
Filed under Misc Logistics, Supply Chain Management
Swizstick has made numerous references to India becoming the new hot spot for manufacturing services, and as such the need for logistics in India will become increasingly important. This fact is supported by recent plans from many companies like DHL, Fedex, and UPS, to expand there service offerings in India thus making major inroads into the logistics landscape in that area of the world. Eyefortransport.com has recently published an excellent article on the future of logistics in India. Here is a brief excerpt from the article:
India is being touted as the land of opportunity for logistics service providers all over the world.
(11/9/2005)
The demand for logistics services has been largely driven by the remarkable growth of the Indian economy, which was 7.3% in 2004-05 and is predicted to grow between 6% and 7% in 2005-06.
The Indian logistics market, valued at around US$14 billion in 2004, is expected to grow at a compounded annual growth rate of around 7%.
This growth will continue as European companies continue to set up manufacturing operations in India and large retailers such as Shoppers Stop, RPG, and Big Bazaar expand to smaller cities.
Logistics management in India has become complex, with about ten million retail outlets to cater to the needs of one billion people. Indian entrepreneurs are forming new companies and taking advantage of government policies designed to promote greater efficiencies in a sector where large global businesses have yet to make their mark.
Indian players are realizing the potential in the outsourced logistics market, and are expanding their range of activities to include added-value services and customized supply chain management solutions.
The Indian government plans to execute most of its infrastructure projects through public-private partnership initiatives to relieve pressure on public finances. It is also removing obstacles to foreign direct investment (FDI) and focusing on free trade agreements with other countries. These actions will promote a more efficient and competitive domestic logistics services market and offer investment opportunities for smart global companies.
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