New Delhi, 22 September (IANS). India’s logistics sector can increase by almost three times in the next decade to about 120 lakh crore rupees. This information was given in a new report.
According to a report by Omnisins Capital, this increase will be inspired by investment in infrastructure, government reforms and formalization of industry.
The report states that India’s GDP is expected to increase from $ 2025 to $ 10 by $ 2035, with the contribution of industry and agriculture to contribute $ 4 trillion.
Logistics cost is about 30 percent of India’s agricultural industry gross domestic product, so it is estimated that the logistics market will reach $ 1.2 trillion or about Rs 120 lakh crore by 2035.
Ashwini Shami, president and chief portfolio manager of Omnisins Capital, said the area is on the verge of several decades bouncing on record public expenditure and reforms.
He said, “Government initiatives like National Infrastructure Pipeline, PM Speed Power and National Logistics Policy directly remove the disabilities of the region.”
He further stated that digitization and Goods and Services Tax (GST) are accelerating the formalization of large scale fragmented logistics industry, “
According to the report, the government’s infrastructure expenditure has increased from 2.1 percent of GDP in 2021 to 3.1 percent in 2025 and is expected to reach 5 percent by 2030.
Projects such as India-East-Europe Economic Corridor (IMEC), along with large-scale investment in roads, railways and dedicated freight corridors, are expected to strengthen costs in cost, reduction in transit time and India’s role in global trade.
Increased manufacturing production under Make in India and Production-Linked Promotion Scheme will also support the development of the region.
Also, digitization through platforms such as unified logistics interface platform, e-way bill and RFID-competent tracking has improved efficiency.
Under the GST 2.0 and National Logistics Policy, up to 60 percent of the industry is expected to be formalized by 2035, while currently the unorganized base is about 80 percent.
-IANS
ABS/