India's logistics market is valued at $300 billion and is growing at a 16% CAGR, with a logistics cost as a percentage of GDP at 14.4%. Key infrastructure initiatives include dedicated freight corridors, a vast road network, and investments in multimodal transport to enhance efficiency across air, rail, and maritime sectors. The increasing demand in manufacturing, e-commerce, and agriculture, along with the government's 'Make in India' initiative, is expected to significantly boost the logistics industry in the coming years.

1. LOGISTICS
INDIA
in
OVERVIEW
Rajath D. M.
12.12.2016

2. 14.4%
Logistics Cost as
Percentage of GDP
Scenario
LPI3.42
Logistics Performance Index
Ranks 35 Globally
Major contributing
Industries
Autocomponents
Cements
Textiles
Pharmaceuticals
$300billion
Size of India’s Logistics market
Growing at a rate of 16% CAGR

3. ScenarioCost & Mode of logistics

4. Transport
Infrastructure, Initiatives, Growth

5. Rail
7,549
Freight trains
239,321
Freight Cars
64,600
Route Kms
2.8M tonnes
Freight Traffic per day
Dedicated Freight
Corridors
Eastern & Western DFCs comprising
total of 3,360KMs completed
Additional DFCs under planning:
North-South, East-West, East coast
& South-West
The Golden Quadrilateral Freight
Corridor - GQFC connects 10,122
kms & generates 55% of revenue
Ro-Ro
scheme
Unique Roll on - Roll off scheme
introduced for Trucks by Konkan
Railway
Allows trucks to be transported on
flatbed trailers
110,000 trucks transported so far,
bringing in ₹ 740 million in revenues
Private
Railways
Few private companies, ports own
private railways
The Freight Charges on these routes
are decided by Indian Railways
Some of these are joint sector
companies and some work on a
model similar to BoT

6. Road
5 million
Kms of Total
road network
70,934
Kms of National
Highways
1,208
Kms of
Expressways
Public-Private
Partnership
Build Operate Transfer (BOT) Toll,
BOT (Annuity) and the Hybrid
Annuity Model (HAM)
Plan to build 2M Kms of NH & to
convert 40,000 Kms of SH to NH
Investment opportunities in logistic
parks, cold storage, warehousing
along the Highways
Golden
Quadrilateral
Golden Quadrilateral project
connecting 4 metropolitans
completed in 2012
5th largest highway project in the
world connecting 5,846 Kms
Major Industrial hubs planned across
GQ to boost economy
Smart
Highways
Smart Highways initiative with
Intelligent Traffic Management
Systems, Variable Messaging
Systems etc planned
Rs 5 to Rs 100 coupons introduced
by MoRTH to promote cashless toll
collection on National Highways
2.8 million
Freight trucks
50%
Of total Freight
Movement

7. Water
7,517
Kms of
coastline
95%
Of Foreign trade
by Sea
12
Major
ports
Shipping
Corporation of India
Govt owned company owns &
operates 35% of tonnage
Has a fleet of 79 ships of 2750,000
GT (4.8 million DWT) and also
manages 53 research, survey and
support vessels of 120,000 GT
(060,000 DWT)
Sagarmala
Initiative
Strategic and customer-oriented
initiative of the GoI to modernize
India's Ports
6 megaports planned in states of
Karnataka, Tamil Nadu, Kerala, West
Bengal & Andhra Pradesh
Total investment of USD 10 Billion
committed
Inland
Waterways
India has an extensive network of
inland waterways in the form of
rivers, canals, backwaters and
creeks
5 National Waterways have been
declared connecting over 2000Kms
Waterways have immense potential
and are highly underutilized in India
1605M
Metric Tonnes of
Cargo in 2014-15
187
Minor
Ports
$2.69B
Invested in ports &
shipping in last 3 years

8. Air
2.28million
Metric tonnes of
cargo per year
350
Major
airports
Scope for growth
With Make in India and increased
focus on electronics, Air Cargo has a
lot of scope for growth
Key growth to come from light, high
value goods
Great potential for foreign trade and
exports
3PLs leading
Air Cargo
Entry of DHL, TNT etc Third party
logistics is fuelling Air Cargo
logistics
$14B
Invested in airports
in last 3 years
12.5%
CAGR for
next 5 years
$85billion
Estimated market
in 2020
Dedicated Air Cargo
terminals
Dedicated terminals and private
bonded facilities being set up at
metro airports
Smaller, new airports being built to
promote air cargo

9. Storage &
Warehousing

10. Industrial
Warehousing
Driven by high retail demand and
consumer appetite. Currently on
most promising growth trajectory
Liquid
Warehousing
Mainly refers to the storage of liquid
bulk such as crude, petroleum
products, chemical and edible oil
Cold Storage
Storage of perishable goods. High
potential of growth targeting un-
broken cold chain
Agri Warehousing
Targeted to store agricultural
goods with larger shelf life
Container
Storage
Primarily targeting export-import
led container handling

11. Growth Drivers

12. Export Import Led Demand
In 2014-15, all major and non-major Indian Ports in
India, as listed by Indian Ports Association (IPA)
handled about 1605 Million Metric Tonnes (MMT) cargo
EXIM cargo is expected to increase to 2,800 MMT by
2020
Containers handling is growing at about 11% CAGR
Manufacturing Led Demand
Indian manufacturing GDP is approximately 15% of the
total and stood at INR 8.6 trillion in 2013–14
The manufacturing sector is growing at a CAGR of
7.3% since the past nine years
The "Make in India" initiative is expected to boost the
manufacturing sector to 10% growth
The manufacturing sector spends 2-20% of its revenue
on logistics
Consumption Led Demand
Per capita income - Growth of 10.4% in 2013-14
Booming e-commerce industry
E-commerce industry to reach USD 20 billion to USD
25 billion by 2017
FMCG market is also gaining traction
Agriculture Led Demand
India is the second largest producer of vegetables and
fruits after China
Because of the lack of infrastructure and broken cold
chain, more than 30% of agri-produce is lost in fields
post harvesting