Revitalizing India’s logistics industry

By end-to-end logistics network, required infrastructure facilities, and digital services platform

A conference titled ‘India – On the Cusp of a Logistics Revolution’ was organised by ASSOCHAM in July 2017 to discuss and deliberate various aspects pertaining to the sector. Stakeholders from across the industry, which included policymakers, modal infrastructure service providers, terminal infrastructure providers and logistics service providers (LSPs), attended the conference.

Challenges of the Indian logistics sector

  1. Infrastructure - this is reflected in inadequate and low-quality modal and terminal transport infrastructure, suboptimal modal mix, inefficient and ill-designed storage facilities for cargo and containers and inefficient operational and maintenance protocols, and poor adoption/adaptation of technology which leads to high and inconsistent cargo transit time, inefficient use of resources and poor fleet management.
  2. Skill Development - Lack of skilled manpower is the result of inadequate training and proper leadership and support. The sector needs to specifically build a pool of personnel comprising truck drivers, seafarers, warehousing managers, quality inspection supervisors, among others. There are limited institutes for soft skills, and operational and technical training.
  3. Information Technology - Technological infrastructure has remained inadequate, marked by slow network speeds, subpar performance, and unreliable hardware and software — all leading to high costs and underperformance.

It is clear that the Indian logistics sector faces challenges and there is a lot to act upon. Use of innovative models, new technological systems, international best practices, research and adequate implementation approach can all help to improve the sector, which in turn can stimulate growth and employment in the country.

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