Indian logistics Growth and MBE

How have logistics propelled the growth of the Indian eCommerce market? How have SMEs propelled the growth of the Indian economy? Read the blog to know how you can help SMEs and enter the logistics market at the same time.

As one of the fastest-growing economies in the world, India presents a unique opportunity to become a major player in an industry that has shown both massive growth and a clear need for further development: The logistics sector. Although there has been a generally weak response for the need for logistics, the industry has continued to grow because of the progress in the retail, e-commerce, and manufacturing sectors. These sectors in turn continue to grow despite the growing need for logistics support. This disparity in the strength of logistics infrastructure and the high rate of growth in exports and manufacturing is creating a bottleneck that is stifling the future economic growth of the country. Hence, demonstrating a clear need for the support and growth of the logistics sector.
        	The logistics industry in India is growing very quickly, with the sector expected to grow at a CAGR of 15.5% between 2019 and 2024. The industry currently employs about 22 million people and is expected to employ another 1.2 million by 2025. There are many reasons for the predicted growth, such as the demonstrated success of government programs like Make in India and Digital India, as well as the increasing demand for e-commerce and the expansion of the retail and manufacturing sectors. Moreover, the increasing presence and consumer trust in online shopping on social media, which consists of 448 million users from India. The government’s infrastructure development initiatives and their business-friendly policies are aimed at encouraging investment by offering tax breaks and other incentives to companies that could help with facilitating growth. 

As future trends become clear, so does the need for logistics support. India is becoming increasingly involved with technology, although they are a bit behind other large manufacturing countries. The growth of technological development and the e-commerce sector, which is one of the fastest-growing sectors in India, leads to an increased demand for efficient warehousing, order processing, and shipping. MBE offers all of these services. Businesses are becoming increasingly globalized, which further shows a need for efficient supply chain management systems and a demand for logistics services that can facilitate cross-border trade.
India’s large population and the geographical area present challenges for logistics companies, but also a huge potential market for products and services. India is home to 48 million SMEs, the second-largest amount in the world behind only China. SMEs contribute to 45% of manufacturing output and 40% of total exports, and companies such as MBE are vital to their continued success. Many new government policies are also expected to be implemented in near future, which is expected to give support to sources of India’s growth, namely SMEs.  This in turn will increase demand for the logistics sector. As SMEs are the primary consumers that MBE promotes its services to, this growth will expand an already massive consumer base for the company in the Indian market. 

Moreover, the Goods and Services Tax Act of 2017 simplified clearance processes, reduced paperwork, cut travel time, and lowered logistics costs by 30-40%. The government is attempting to continue to lower logistics costs, which is currently around 14% of GDP, to 8-9%. The logistics market was valued at about US $250 billion in 2021 and is expected to grow by US $380 million by 2025. A report by the World Economic Forum also stated that digital transformation in the logistics industry would be valued at US $1.5 trillion in 2025. This makes it an ideal time to enter into the logistics sector in India, and the MBE Master Licensing presents a great opportunityto do so.

Start a New Business in India With MBE

MBE provides very good business opportunities for India. To learn more about the opportunity, contact us and we will provide you with more details on the opportunity.

  • * All fields are mandatory

    to the processing of my personal data by MBE Worldwide S.p.A. for marketing purposes as better described in para. 3, lit. c. of the above-mentioned privacy notice.