The logistics & infrastructure sectors are the backbone of any country’s economy. The sector encompasses transportation, warehousing, packaging, and other related services, all of which are essential for the movement of goods across the country. The major domination of the sector is road transportation, which accounts for over 60% of the total freight movement. Railways, waterways, and air transport also play a significant role in the logistics industry.
According to the Economic Survey of India 2020-21, the logistics sector is worth around $215 billion and is expected to grow to $370 billion by 2025. The sector contributes to about 13-14% of India's GDP, which is higher than the global average of 10-11%. The report also states that the sector provides employment to over 22 million people in the country.
Govt. Of India Initiatives
Moreover, the Indian government has made significant initiatives to develop these sectors. The development of highways, ports, airports, and railways has facilitated the movement of goods and services across the country. The government has recognized the importance of the logistics sector in India's economic growth and has taken several measures to improve the infrastructure and reduce logistics costs. The National Logistics Policy, announced in 2019, aims to create a single-window e-logistics market and reduce logistics costs to 9% of the GDP by 2022. The introduction of dedicated freight corridors and the modernization of railway infrastructure are some of the measures being taken to improve the efficiency of rail transport.
Booming Indian eCommerce Market
India is a vast country with a huge population, and the demand for goods and services is growing rapidly. The logistics sector plays a crucial role in ensuring the smooth flow of goods across the country. The e-commerce boom in India has also had a significant impact on the logistics sector. With the growth of online retail, there has been a surge in demand for last-mile delivery services. Logistics companies have had to adapt to this change by investing in technology and expanding their network to reach remote areas. Out of many pillars of logistics and infrastructure sectors, warehousing is an essential component which involves services such as storage, inventory management, and transportation.
Increase in Demand of Value Added Services
The growth in the eCommerce sector has created significant opportunities for the value-added service providers.The packaging industry provides services such as labelling, barcoding, and tamper-proof packaging, etc. The packaging industry has developed new technologies and materials to ensure the safe and secure transportation of goods. Another important part of the business especially for businesses dealing in imports and exports is Customs clearance and documentation. The value-added service providers assist the customers in completing the necessary documentation and complying with the customs regulations.
Join MBE & Become a Part of the India's Growth
If someone is on the lookout to be a part of this rapidly growing sector, Mail Boxes Etc is your way to go forward. It is a leading commerce-enablement company which provides e-commerce, shipping, fulfilment and marketing solutions to SMEs and consumers. With India being one of the fastest-growing e-commerce markets in the world, the move is seen as a strategic step for the company to expand its reach and tap into the immense potential of the Indian market. Mail Boxes Etc's purpose behind entry into India is to help customers’ and partners’ businesses thrive and boost the country's economy. The company is known for its passion and commitment and its entry into India is expected to disrupt various sectors, including logistics, e-commerce, and digital payments.
Written by Shivyen Anand
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