Warehousing and logistics sector in India on the surge
According to a study by India Brand Equity Foundation (IEBF), India’s logistics sector is estimated at USD 215 Billion. It is expected that the sector will attract investments worth USD 500 Billion by 2025. Moreover, the sector is a massive employment generator, estimated to employ up to 40 million people by the end of 2020.
Key takeaways from the Union Budget to boost warehousing and logistics sector
- A fund allocation of Rs 1.7 lakh crore for transport and infrastructure, including railway enhancement and investments in warehousing and logistics, is a progressive step that will help fasten growth across industry verticals such as manufacturing as well as improve last-mile delivery, mostly in rural areas
- The ‘National Infrastructure Pipeline’ plan and the upcoming ‘National Logistics Policy’ are expected to facilitate transportation of goods and lower logistics costs across the country through various measures, which include a single window logistics market
- Geo-tagging of all warehouses, provision of viability gap funding for setting up of warehouses at block or taluka levels, Krishi trains, Krishi Udaan scheme for air transportation of perishable commodities like fruits and vegetables, and a Rs 100 lakh crore national infrastructure pipeline towards the creation of roads, railway lines, airports, and ports
Three important trends to drive growth in Warehousing & Logistics
- Making constant changes and upgrades in the operations system of the logistics companies will bring benefit to the customers since this creates an environment of healthy competition while bringing the best services forward
- Adopting new policies and regulations put forth by the government are going to set a new benchmark for the warehousing & logistics industry
- Artificial intelligence, machine learning and the internet of things are ground-breaking compared to conventional logistics operations in the country. Infusing latest technological advancements are going to further boost growth in the warehousing and logistics sector
Trade shows play an important role in perpetuating the development of these sectors.
India Warehousing Show is one such exhibition, held in Delhi for all logistics and supply chain professional, which offers all its participants an enriching business platform with a wider networking opportunity in 2020. The show offers a unique platform to find insights, seek relevant information, explore advanced technologies, network and generate valuable contacts, all under one roof. The USP of India Warehousing Show has always been the perfect mix of buyers coming to the show. The show hosts buyers from 3PL/4PL companies, automobile, OEM, FMCG, electronics, manufacturing units, retail companies, government departments, architects and consultants.
Be a part of India Warehousing Show from 18-20 June at Pragati Maidan to witness the sheer extravaganza of the ultimate market place for warehousing, logistics, material handling and supply chain.
From godowns to world-class warehouses: Journey of warehousing sector in India
Warehousing is an integral component of the logistic supply chain. It plays an important role in the storage of goods and merchandise during the different stages of transportation. From being dark, dusty and unventilated storage areas to modern, insulated, ventilated, safe storage facilities, the warehousing sector has come a long way. They are now equipped to provide value-added services such as packaging, labelling, barcoding and reverse logistics. With the evolution in trade, infrastructure, technology and human resources, warehousing can soon turn into the backbone of the logistics and modern trade in India.
According to a report, the Indian warehousing industry, estimated to be worth INR 561 Billion (excluding inventory carrying costs, which amount to another ~INR 4,340 billion) in 2017, is estimated to grow at 9.5% CAGR to reach INR 968 Billion by 2024.
Several factors are driving the development of warehousing sector in India:
- With the government’s Make in India initiative, there is increased growth in the manufacturing sector, particularly in areas like Textiles, Pharmaceuticals, Telecommunications, Automobiles, Food and Beverages
- There are other sectors such as organised retail, information technology, telecommunications and healthcare that have witnessed dramatic growth. This is driving a strong demand as well as consumption, eventually driving the growth of warehousing sector
- With internet penetration, technology-enabled growth drivers like automation, real-time tracking, RFID for automated data collection and stock identification are getting imbibed in warehouses. This is driving technological development and modernisation of existing warehouses giving rise to sophistication and increased efficiency
- With the granting of infrastructure status to the logistics segment, there has been a rise in the investments in the free trade warehousing zones (FTWZs) and logistic parks. Moreover, reform in the tax structures and new policies on international trade have led to fast growth of the sector
The country needs a platform to converge, network and gauge latest developments encompassing warehousing, logistics and the supply chain. India Warehousing Show is one such exhibition which caters to the evolving warehousing sector in the country. Industry players can use this platform to launch products, unveil new technologies, meet business prospects as well as grow their business.
Have you booked your booth yet? If not, reserve your space now to benefit from a new location, modern exhibition halls with newer opportunities at PRAGATI MAIDAN from 18 -20 June 2020!