India’s GDP is estimated to be more than US dollars 28 trillion in market exchange terms by 2050. There is no doubt that India is growing towards this aim and hopes to reach the next milestone in the next 25 years.
The transportation and logistics sector will definitely play a very important role in supporting our country’s growth targets. Our country’s economic progress is dependent a lot on Logistics, especially the efficient and uninterrupted movement of goods and services across the supply chain. The logistic sector contributes to around 15 to 17% to GDP and provides employment for more than 23 million people. Optimum costs, timely delivery, facing tough competition-this is all crucial for growing businesses. It promotes international business. Technological innovation and globalisation have provided a boosting factor to stimulate economic growth, trade and productivity. Since logistics has contributed a lot towards trade and commerce, the economic development of countries like India is indebted to logistics sector for a sustainable progress.
But the considerable expense in the logistics sector comes from the fact that in India freight movement depends on road transportation that constitutes about 66 percent of cargo in ton kilometre. Rail transportation accounts for 31%. Shipping and air transport behind with 3 percent and 1 percent respectively.
Now the government has come up with many such initiative to improve India’s logistics and supply chain industry. Implementing GST and also recognising logistics as an infrastructure are two important moves that have been monumental in bringing about this change. Indian logistics sector is one of the largest in the world and it is a main factor in driving economic growth. Though covid temporarily hampered this growth, Indian logistics has picked up its pace and is recovering rapidly and with a remarkable growth of 14%, we are expected to reach great heights.