Updated: October 16, 2023, 11:45 IST
The Logistics Sector in India has been seeing monumental growth, and now a new report is confirming the vast growth. The sector has been growing at a staggering rate of 12% CAGR, and at this rate, it will generate more than 10 million jobs by 2027.
The staffing company Team Lease Services says in its report that the primary reason for such astonishing growth is the transition of the sector from unorganized to organized. According to the report, this added momentum has acted as a further catalyst for industry expansion. This growth is good for the overall economy as it is opening new job opportunities.
The report added that various industry reforms, like the government’s Production-Linked Incentive (PLI) scheme and robust production figures encompassing domestic and export activities, have influenced the booming sector and led to its rapid growth.
The Vice-President and Business Head of Team Lease stated, “The spurt in output has increased demand for logistics services such as transportation, warehousing, and distribution. Furthermore, shifting economic dynamics such as rising disposable incomes, lower inflation rates, and rising rural demand have sparked a nationwide consumption boom.
The booming sector will impact all the cities, but specifically, cities like Indore, Guwahati, Nagpur, Jaipur, Vadodara, and Lucknow are expected at an even faster rate. This growth rate will help the cities become major logistics hubs. The high growth in the industry will lead to a rise in demand for jobs like supply chain managers, logistics specialists, distribution managers, and Warehousing Managers. This wide range of roles will cater to a large spectrum of the population as every profile requires different skills and expertise.
In a country like India, where the population is extremely high, the logistics sector, providing more than 10 million jobs, will help the country and relieve the tired, unemployed individuals.
The report also considers that with time, the Logistics Industry will be highly dependent on advanced technology like Artificial Intelligence (AI), automation, and Machine Learning (ML) to perform most of the functions like sophisticated demand forecasting and supply chain planning. The report suggests that Workforce Productivity will be highly boosted after integrating advanced technology.
Various Industry reports have proven that India has risen to 38th rank out of 139 counties on the Logistics Performance Index, proving that the growth has made its mark in the global logistics landscape.
The ever-improving rank of India in the index has been on par with the economic potential. Numerous projections suggest the country will reach the $26 trillion mark by FY48. Various factors are going India’ sway, boosting India’s logistics Industry, such as the young and skilled population and expertise in handling logistics at every level. The report says that with such consistent and skyrocketing growth, the logistics sector will play a vital role in the country’s economic growth.