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Overview of Logistics Industry in India.

Overview of Logistics Industry in India.

By: Shashank Shekhar

The logistics industry is considered a crucial sector to boost international trade as a result of digitalization and globalization. The logistics and freight industry is continuously evolving and is regarded as the backbone of the economy in India as it ensures quick, efficient and economical transport of goods across India and many commercial sectors depend on it. The innovative and advanced technologies have resulted in increased efficiency and extra combined operating models in the logistics companies in India.


Growth of logistics companies in Delhi and other popular cities contributes to the growth of the logistics sector, which in turn increases the competitiveness among nations. Therefore, logistics companies become a vital element of economic development and growth of the country.



The Logistics Industry includes all activities of the supply chain, including transportation, customer service, inventory management, flow of information, and order processing. Among the other activities of the supply chain are warehousing, material handling, purchasing, packaging, and information dissemination. The Logistics market's revenue in 2015 was US$ 8185.46 billion and is expected to grow at a CAGR of 7.5% from 2015 to 2024. The market's volume in 2015 was 54.69 billion tons and is expected to reach 92.10 billion tons by 2024, growing at a CAGR of 6% from 2016 to 2024.

Research report by Transparency Market Research entitled "Logistics Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2016 - 2024"


The Global Logistics Industry in 2022 is equally subject to global geo political machinations but that apart countless disruptions threaten to tip the balance of global trade as we knew it. These could be stated as follows: -

  • Robotics, automation, 3 D /4 D printing will offset low cost manufacturing advantages.
  • Protectionism favors localisation as well as sustainability.
  • Digitisation and demand driven logistics are pushing supply chains closer to demand.
  • Middle class growth in developing markets is altering supply demand dynamics.
  • Global E Commerce will challenge traditional borders and boundaries.

As a result, there are countless locations with compelling value propositions. In terms of distribution centers, manufacturing centers of excellence, transhipment ports, E-Commerce hubs, and new markets to sell in/source from, retailers and manufacturers have no shortage of options. In addition, if we consider global volatility and hypersensitivity to supply chain exceptions, it becomes clear that supply chain modeling, simulation, and optimisation are fast becoming core competencies.



The logistics sector in India contributes more than 14.4% of the country's GDP, valued at USD$ 200 billion. With the relaxation of FDI norms, the implementation of GST, the growth of ecommerce, positive changes in regulatory policies, and government initiatives such as "Sagarmala" and "Make in India", this sector will exceed $300 billion by 2025. TQS Logistics is one of the emerging pioneers in india. TQS Logistics supply chain solutions is aimed to improve the bridge connecting suppliers and customers.


Out of this USD 200 billion logistics cost, almost 99% is accounted for by the unorganized sector (such as owners of less than 5 trucks, affiliated to a broker or a transport company, small warehouse operators, customs brokers, freight forwarders, etc.), and slightly more than 1%, i.e. approximately USD 2 billion, is contributed by the organized sector. However, the industry is growing at a fast pace and if India can bring down its logistics cost from 14% to 9% of the GDP (level in the US), savings to the tune of USD 50 billion will be realized at the current GDP level, making Indian goods more competitive in the global market. Furthermore, growth in the logistics sector will lead to improved service delivery and customer satisfaction, leading to increased exports of Indian goods and potential for job creation. Currently Logistics contributes to 22 million job creation in india. 


About TQS Logistics

TQS Logistics is determined to contribute to the Mission 2025 to exceed $300 billion. TQS is one of the emerging logistics companies in delhi. It has various services under its belt for different requirements of the customer. At TQS, We understands there are various factors involved in creating effective logistics management, for example, automation and coordination.