The Indian logistics market is expected to grow at a CAGR of 12.17 per cent by 2020 driven by the growth in the manufacturing, retail, FMCG and e-commerce sectors.
India spends around 14.4 per cent of its GDP on logistics and transportation as compared to less than eight per cent spent by the other developing countries.
The 3PL logistics market in India is expected to be worth $301.89 billion by 2020. NOVONOUS estimates that the warehouse market in India is expected to grow at a CAGR of 10 per cent, whereas the freight forwarding market is projected to grow at a CAGR of 12 per cent till 2020.
Entry of global players
Several global players view the Indian logistics market favourably and have announced their intention to increase their capacity of transporting goods from and to Indian markets. Several large global logistics companies have entered India by merging with, or acquiring Indian logistics companies under joint venture agreements.
Demand for multi-modal transport services by the end users is increasing, because it results in reduction of overall transportation costs and quicker movement of cargo. It also requires less documentation. Several Indian logistics companies have formed joint ventures with other global and local players so as to provide multi-modal logistics services extending to air, rail, road and water.
The Indian logistics market has already attracted investments from large global and Indian private equity (PE) firms.
In the emerging scenario, India Logistics Expo 2017, scheduled to be held at the Bombay Exhibition Centre during April 11-13 next, assumes special significance.