About the Sector:
Logistics is regarded as the backbone of the economy, providing efficient and cost effective flow of goods on which other
commercial sectors depend. Logistic industry in India is evolving rapidly, it is the interplay of infrastructure, technology
and new types of service providers, which defines whether the logistic industry is able to help its customers reduce their
costs in logistic sector and provide effective services.
The logistics industry continues to witness growth due to the growth in retail, e-commerce and manufacturing sectors.
Logistics industry is expected to reach over USD 2 billion by 2019. Rise of e-commerce logistics and increased domestic
consumption will lead the way for the industry in the coming years. With a promise of growth and improvements, the service
oriented logistics industry is ready to expand beyond the horizons in the latter half of this decade.
The main sub-sectors thus identified as sub-sectors of the Logistics sector are:
| S. No |
Sub Sectors |
Brief Description |
| 1 |
Warehousing- Storage and Packing |
Constitutes needs of management of inbound material, inventory keeping, and the distribution and dispatch of outbound material.
Tertiary packaging for transportation is an integral part of this sub sector. |
| 2 |
Land Transportation |
Deals with consolidation of cargo, transportation and coordination of the transport network. Given the shortage of Commercial Vehicle
Drivers especially in the Heavy Vehicle segment this will be a focus area for LSC. |
| 3 |
Carrier and Express Services |
Handles time critical and many a time high value consignments and in India documents form a sizeable percentage of the segment.
This is also a sub sector with high employability as many companies also provide services to e-commerce. |
| 4 |
Port Terminals, ICDs' AND CFS Operations |
With the thrust on Port Infrastructure under the Sagarmala project, both the velocity and quantum of cargo movement will substantially
be enhanced. There is bound to be more consolidation of Port user community and multi-skill trained manpower would be the
requirement as the new projects get underway. |
| 5 |
Freight Forwarding and Custom Clearance (Land, Air & Water) |
In a protectionist world sanctity of trade agreements and custom regulations enforcement will be strictly adhered and logistics
professionals would need to be well versed with the export country's regulations as they would in adherence to domestic rules
and regulations. Freight forwarders operate in a very dynamic environment affected by global currency fluctuations and would
need to know the rules of carriage, international trade documents etc. and leverage their domain expertise to arrange cost
effective freight. |
| 6 |
Air Cargo Operations |
With increased regional connectivity time sensitive and high value cargo movement will witness an increase. Most Courier
and Express Companies would be leveraging on this regional connectivity to ensure faster and more reliable delivery
schedules. |
| 5 |
Freight Forwarding and Custom Clearance (Land, Air & Water) |
Agricultural Produce and fruits post-harvest need to be kept in a controlled atmosphere to prevent their deterioration.
Similarly fish catch and meat need to be adequately stored and transported in refrigerated atmosphere where humidity
control becomes very important. Many plants are old and need to be modernized and Operators need to be trained on both
the technical details of the plant and its maintenance as well as on the product |
Logistics Sector employs about 21.24 million as of 2017. of 21.24 million 54% are employed in passenger roadways segment, 35%
in road fright while remaining are in passenger railways, freight forwarding, warehousing, packaging and other services. As per
the National Sample Survey the distribution of employees is mainly in Mumbai, Kolkata, Hyderabad and Ahmedabad Districts whereas
emerging clusters includes Bangalore, Surat and Indore.
Thrust on infrastructure projects such as the dedicated freight & Industrial Corridors like DMIC, expansion of Port Terminals
and construction of Greenfield Port projects under Sagarmala project and Bharatmala project will create fresh employment opportunities.
Increasing income levels and rapid growth in organized retail, e-commerce, QSR etc. will create new opportunities for the youth.
Projected Manpower requirement Scope :
It is estimated that the total workforce will increase from current 21 million to over 31 million by year 2022. That means, this
sector alone will generate additional requirement of over 9 million people across all the modals-roads, railway, ports and aviation.
| Sector |
Projected Manpower
Requirement - 2017 |
Projected Manpower
Requirement - 2022 |
Skilled Manpower
required in next 5 years |
| Capital Goods |
21,000,000 |
31,000,000 |
2,196,000 |