Retail, e-com growth to fuel India's logistics sector: Report

Additionally, COVID-19 has accelerated the growth of e-commerce across India. Online shopping has increased significantly in tier-II and tier-III cities as well due to the easy availability of the internet on cheaper tariffs and restrictions on physical movement during the time of the pandemic. This trend has provided an impetus to the warehousing and logistics sector beyond tier-I cities, as per the FICCI-Anarock report titled 'Industrial & Logistics - Rapidly Gaining Momentum, Providing Enormous Opportunities'.

The warehousing and logistics sector is an essential part of e-commerce and retail businesses across India.

The constant push and ambitions for infrastructure development and policy support provided by the government may ride the next wave of growth for the industrial, warehousing, and logistics sectors in India. The government has introduced a slew of measures such as the Gati Shakti programme, GST, National Manufacturing Policy, Self-Reliant Campaign, Land Reforms, and Tax Reforms to provide necessary infrastructure and policy support to boost the manufacturing sector across the country.

Additionally, COVID-19- led lockdowns across the globe highlighted the need for China plus one strategy for manufacturing as the supply chain for various companies was disrupted at the time of forced lockdowns in China. These companies are now looking to shift their base from China or are keen to open a new manufacturing facility in other countries and India is a top contender, the report added.

“Robust infrastructure and a liberal policy environment may entice these companies to set up their bases in India which may drive the next wave of industrialisation in India. The warehousing and logistics sector is as important as manufacturing. Reasonably priced storage and transportation is the success mantra for many businesses. Considering the sector's importance, the government has timely introduced various reforms such as GST, warehousing policy, and infrastructure status to the logistics sector to provide impetus to the sector. National Logistics Policy is in the draft stage and expected to change the face of the logistics sector in India,” the FICCI-Anarock report further said.

ALCHEMPro News Desk (KD)