What is Logistics? What does it do and benefit? hows the logistics and infrastructure sector in india

1. INDIAN
INFRASTRUCTURE AND
LOGISTICS SYSTEM
Presented By: Pratidhee

2. INTRODUCTION
Logistics is an important part of the business economic system
and is a major global economic activity.
 It encompasses activities like freight transportation,
warehousing, material handling, protective packaging, inventory
control, order processing, marketing, forecasting and customer
service
Logistics is about moving materials, information and funds from
one business to another business or from a business to the
consumer.

3. INDIA’S ECONOMY & LOGISTICS
INDUSTRY
India’s GDP is USD 750 billion and would touch USD 1.4 trillion in the next two
decades (as per Goldman Sach).
Currently it is 10th largest economy
Service sector - 51%
Manufacturing 28%
Agriculture 21%
Work Force
Employment
Contribution to GDP
Logistics Spend is currently 13% compared to 8.7% of US.
Enough Scope to reduce the Logistics Spend which would require growth of 3PLs
and 4PLs and improvement in Infrastructure

4. INDIA’S INFRASTRUCTURE
Indian logistics infrastructure was unorganized and fragmented
for a long time. Interestingly it is a business which is under
massive reorganization to serve the ever-increasing need of the
modern businesses.
Also being touted as the country’s ‘sunshine industry’, the Indian
logistics sector is readying itself to move from its present
unorganized, fragmented business model to an organized,
regulated structure.

5. INDIAN INFRASTRUCTURE CONT..
Transportation is a key element in a logistics infrastructure. Adequate
capacity and reliability of transport infrastructure and services are
important factors which contribute towards the ability of the country
to compete in the field of international trade and attract foreign direct
investment.
It is necessary for the country of the size of India to create a policy
that encourages competitive pricing and coordination between
alternative modes in order to provide an integrated transport system
that assures the mobility of goods at maximum efficiency and
minimum cost.

6. ROADWAYS
India has the third largest road networks in the world which is connected mainly
through national highways and state highways.
Other types of road network include district roads, rural roads, urban roads and
special purpose roads (for military, port and etc).
Road is also the dominant mode of transport which accounts for 68% of freight
movement in India.
Despite having one of the extensive road networks in the world, India has long
suffered a capacity shortage due to poor road quality.
More than 25% of national highways and 50% of state highways are in poor surface
conditions and congested. Most national highways are double-lane or single-lane,
with a mere 2% being four-lane or higher standard

7. RAILWAYS
It was Introduced in 1853, Indian Railways (IR) which is a government
monopoly is the second largest railway network in the world under a single
management.
 The IR network is spread over the route length of 63,028 kms, 24% of
which is electrified and covers 6,853 stations 11 with 42,570 coaches.
This signifies that majority of the revenue (69%) are generated from freight
traffic and the remaining 31% are generated from passenger traffic.
 Though comprising only 16% of the network, the High Density Network
(HDN) which connects the four major cities of Bombay, Delhi, Calcutta and
Madras (known as GQ) carries a significant amount of 65% of the total rail
freight traffic and 55% of passenger traffic.
Railways are considered a relatively cheaper mode of transport and are
used mainly for transporting bulk traffics over long distances.

8. SEAPORTS INDIA
With a vast coastline of 7,517 kms handles 95% of
India’s foreign trade through its seaports.
It has 12 major ports (Figure 2.2) and 184 other
(minor and intermediate) ports.
 Among the minor ports are located in Gujarat,
Maharashtra, Goa, Karnataka, Daman & Dui,
Kartanaka, Kerala, Lakshadweep, and Andra Pradesh.
The major ports are governed by the Major Port
Trust under the control of Central Government, while
the minor ports are under the jurisdiction of their
respective state governments.
The major ports accounts for about 75% of total
port traffic, with an annual 14 average growth of
6.6% in 1990s.

9. AIRPORTS
Airports in India are managed by Airport Authority of India (AAI),
under the central government.
The country has six international airports- Delhi, Bombay, Calcutta,
Madras, Trivandrum and the newly upgraded Bangalore airport.
The air cargo carried by airways usually constitutes high value
goods such as computers, microprocessors, electronics and optical
equipment, precision instruments and perishable foodstuffs.

10. RECENT SCENARIO
The recent Indian logistics sector comprises of inbound and outbound
segments of the manufacturing and service supply chains.
 Logistics infrastructure has gained a lot of attention both from
business industry as well as policy makers.
Inadequate logistics infrastructure has an effect of creating
bottlenecks in the growth of an economy.
The logistics management regimen has the capability of overcoming
the disadvantages of the infrastructure in the short run while
providing cutting edge competitiveness in the long term.

11. CHALLENGES FACED
 The most essential challenge faced by the industry today is insufficient integration of transport networks,
information technology and warehousing & distribution facilities.
 The disorganized nature of the logistics sector in India.
 Poor facilities and management are the reason for high levels of loss, damage and deterioration of
stock, mainly in the perishables sector.
 Insufficient specialist equipment and is also partly down to lack of training.
 The field is still under penetrated as far as research is concerned.
 Essential to prioritize research and development so that the weaknesses in the industry can be taken
care of and improved.

12. SOLUTIONS TO SOME OF THE
CHALLENGES
Establishing training intuitions, so that there is improvement in the
overall service quality of the sector.
Good storage and Warehousing facilities are important for the growth
of the logistics industry.
Due to the rate of increase in the transportation of perishable
products, logistics agencies should focus on enhancing the
Warehousing facilities.
Warehousing is required to go to the next level taking into account
the changing dynamics of JIT manufacturing, global procurement and
new models of sales and distribution.
Emphasis on research and development
Particular focus has to be on research in process excellence which can
help to eliminate inefficiencies and bring Indian logistics on par with
global practices.

13. CONCLUSION
The granting of infrastructure status to the Indian logistics sector, and
the combined growth momentum of infra, real estate, and retail,
besides directly boosting growth, are also expected to create a variety
of job opportunities for young India.
These factors are leading the sector to a brighter future, which will
also strengthen the country’s economy in the years to come.

14. THANK YOU!