A robust logistics sector can go a long way in boosting India’s quest for being a manufacturing giant given that several initiatives like ‘Make in India’ have been launched by the government. The industry has seen rapid growth in the last few years due to increased planned outlay of the government, improved infrastructure facilities and greater access to global markets. Logistics sector is expected to witness a structural shift over the next 3–5 years as it gets more organized and consolidates.

The establishment of dedicated freight corridors, containerization, inland waterways, more highways and expansion of air connectivity, ports& railways has resulted in an explosion of activities in the sector creating huge demand for warehouses and container stations.

Logistics cost in India accounts for 13-17% of the Gross Domestic Product (GDP) which is nearly double (6-9%) the logistics cost to GDP ratio in developed countries such as the US, Hong Kong, and France. Much of the higher cost could be attributed to absence of efficient intermodal and multimodal transport systems. There is immense scope for investments to achieve value chain efficiencies.