India’s logistics sector has emerged as a market differentiator, with an increasing emphasis on efficiency and visibility within the supply chain. Recently, India made significant progress on the World Bank’s Logistics Performance Index (LPI) in 2023, climbing six places to reach the 38th position among 139 countries.
“India’s impressive six-spot jump in the World Bank’s Logistics Performance Index is a testament to the country’s rapid growth and development in the logistics sector,” said Raaja Kanwar, Chairman and Managing Director of Apollo International and Apollo Supply Chain.
According to him, robust tech capabilities and infrastructure will be crucial for players to keep pace with this rapidly changing landscape.
“It is essential to continue investing in technology and sustainable logistics practices to further enhance the sector’s growth and efficiency,” Kanwar said.
Ankit Gupta, the Founder and Director of Exporters India, highlighted the rising online shopping demand and the growth of e-commerce platforms in India.
“For e-commerce enterprises to succeed, effective logistics and transportation infrastructure are essential,” he said. He added that India’s improved LPI ranking is a promising indicator for the future.
Satish Shukla, CHRO and Co-Founder of Addverb, emphasised the significant improvement in public infrastructure in India over the last decade, which has aided the development of logistics parks.
He also attributed the growth of the e-commerce logistics market to the increased adoption of smartphones in the hinterland of India and the digital revolution brought about by new-age companies.
“E-commerce companies in India now have access to world-class warehouse automation equipment, robots, software, and solutions to address their unique challenges, such as fast delivery, diverse product handling, and returns management,” he said.
JB Singh, Director of MOVIN Express, highlighted how this positive development in logistics bodes well for the country’s economic growth, enabling businesses to expand their operations globally through an efficient logistics ecosystem.
He stressed the importance of staying agile, investing in cutting-edge technology, and upskilling the workforce to maintain a competitive edge.
Snehil A Singhai, Head of Business Development at KSH Logistics, acknowledged the accomplishments achieved by the government and the commercial sector, contributing to India’s improved logistics performance. Singhai emphasised that infrastructure investments, faster technology adoption, and the “Made in India” initiative will continue to enhance the logistics sector.
Rajesh Kapase, CEO of Trackon Couriers, highlighted how India’s improved logistics performance will benefit the e-commerce market by making transportation and delivery of goods easier and more cost-effective.
“This will not only benefit established players but also create opportunities for new entrants to the market,” Kapase noted.
S L Ganapathi, Sr. Professor of Operation and Logistics at FOSTIIMA B-School and an author, pointed out the introduction of processes such as recognition of authorised economic operators (AEO) and the Risk Management System of clearance Customs, which have facilitated progress.
He added that more reforms, such as customs duty payments from digital wallets and the expansion of items in the Risk Management System, will further assist in enhancing logistics performance.
Akshay Hegde, Co-Founder of ShakeDeal, emphasised the significant opportunity presented by India’s improving logistics performance for the e-commerce industry. He noted the projected growth of the Indian e-commerce market and stressed the importance of automation, digitization, infrastructure investments, and strong partnerships with e-commerce companies to unlock the market’s growth potential.
Rahul Mehra, Co-Founder of Roadcast funded by Jubilant Foodworks, mentioned that the e-commerce logistics market in India is steadily growing, with the target of transporting 10 billion parcels by FY28.
“Investment in infrastructure development, inter-cut connectivity, inter-city connectivity, better roadways, etc will all help reach the target,” he emphasised.
Vivek Juneja, Founder and Managing Director, Varuna Group also have similar thoughts on this, adding, “India’s e-commerce logistics market to reach 10 billion parcels by FY28 is driven by increasing e-commerce adoption, favorable policies, investments in infrastructure, technological advancements, and intense market competition”
“Continued efforts and collaboration will be essential to harness this growth potential and ensure a thriving e-commerce logistics sector in India, he added.
Himanshu Singhal, Head of Business Development Marketing and Sales at CABT Logistics, highlighted the need to streamline operations, standardise processes, and develop infrastructure within the logistics sector to achieve the FY28 target. Despite being highly fragmented, Singhal expressed confidence in the sector’s ability to reach the target based on the achievements already made.
In conclusion, this achievement in India’s logistics performance can be attributed to substantial investments in both soft and hard infrastructure, as well as advancements.