Transporting India

Indian logistics sector has seen annual growth rates of approximately 15% over the last few years, which is expected to continue growing at a rapid pace.

• Generally, the logistics sector grows at 1.5x times the GDP and India is set to be the fastest growing economy among major world economies
• The Government currently has a focus to improve the transportation infrastructure
• As part of Budget 2021-22, an enhanced outlay of ₹1.18 lakh crores for Ministry of Road Transport and Highways has been provided, of which ₹1.08 lakh crores is for capital expenditure - the highest ever
• By March 2022, 8,500 kms of road projects will be awarded and an additional 11,000 kms of national highway corridors will be completed
• Airport up gradation, improved port connectivity, development of logistics parks and accelerated pace of road construction are also focal points
• Implementation of GST, which will lead to supply chain decisions on the basis of cost efficiency, will positively affect the sector
• E-commerce sector is growing at a rate of over 60% a year and logistics is an integral part of e-commerce businesses
• Currently, the logistics expenditure of e-commerce companies stands at around 10% and the sector is expected to grow along with the e-commerce sector

This smallcase consists of companies that will gain from the boost in growth of the logistics sector.