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Role of Logistics in Indian Economy

The document discusses the role of logistics in the Indian economy. It describes how logistics management involves transportation, warehousing, inventory management and more. Logistics supports India's key sectors - agriculture, manufacturing and services - by facilitating the movement of goods. While India's logistics industry has significant growth opportunities due to the growing economy, it also faces challenges like inadequate infrastructure and high transportation costs. The government is taking steps to improve infrastructure and streamline regulations to better support the logistics industry.

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3K views18 pages

Role of Logistics in Indian Economy

The document discusses the role of logistics in the Indian economy. It describes how logistics management involves transportation, warehousing, inventory management and more. Logistics supports India's key sectors - agriculture, manufacturing and services - by facilitating the movement of goods. While India's logistics industry has significant growth opportunities due to the growing economy, it also faces challenges like inadequate infrastructure and high transportation costs. The government is taking steps to improve infrastructure and streamline regulations to better support the logistics industry.

Uploaded by

shivani88
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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ROLE OF LOGISTICS

IN INDIAN ECONOMY
BY
ANANYA SINGH
MBA(IB)
ABOUT THE COMPANY
Azure Logistics Private Limited
offer professional freight collection and solutions
Is specialized in provision of freight forwarding.
It provides services like

-Combined sea-air services


-Multi-modal transportation
-Customs clearance
-Warehousing and 3PL Logistics
-Trucking
-Insurance
-Distribution
-Special packing
-Labeling
-Data and inventory management
INTRODUCTION
 Logistics management include
-inbound and outbound transportation
management,
- fleet management,
- warehousing,
- materials handling,
- order fulfillment,
-inventory management,
 Logistics and SCM are often used
interchangeably
PURPOSE OF LOGISTICS
INDUSTRY
 The purpose of logistics industry is to enable
an effective transportation or timely
movement of goods from one place to
another.
DIFFERENT MEDIUMS OF
LOGISTICS IN INDIA
The mediums of logistics services in India can
be categorized in the following ways:-

 Airways
 Land Transport
 Railways
 Waterways
FEATURES OF INDIAN LOGISTICS
INDUSTRY
 A number of small-integrated players
 Transportation costs account for nearly 40%
of production costs.
 Logistics costs around 13% of GDP, compared
to 8% in the US.
 Growth in Indian economy is the major
driving factor for the demand in logistics
industry.
 Chemicals, metals, FMCG, cement and
textiles have been identified as the top five
contributors to logistics revenues.
STATE OF INDIAN LOGISTICS
GROWTH DRIVERS FOR
LOGISTICS IN INDIA
 General growth of the Indian economy
 Manufacturing boom-for exports as well as for
domestic market.
 Expected rise in International trade from India.
 MNC’s setting up manufacturing in India.
 Implementation of VAT will lead to growth in
warehousing business.
 Government’s thrust on Infrastructure.
 Opening of organized retail sector
LOGISTICS IN THE THREE
SECTORS OF THE ECONOMY
 The 3 main sectors of Indian economy are-
-agriculture
-manufacturing
-services
 Provides transport facility
 Globally competitive.
AGRICULTURE
It comprises a number of inter related value
chain-
 Agriculture value chain-starts with the
farmers and ends on consumers
 Supporting Manufacturing Services-comprises
fertilizer producers and distributors, grain
distributors, tractor, and farm equipment
manufacturers.
 Processed food value chain-converts food
grains into processed/canned foods .
MANUFACTURING
 Manufacturing today is driven by global
demands and forces.
 Logistics plays a critical role in coordinating
procurement, manufacturing and
distribution.
 It can help companies reduce the cost of
transportation and minimize inventory.
SERVICES
 The service sector comprises of the financial,
healthcare, retail and the
telecommunications industry.
 It helps service sector by supporting after-
sales repair and maintenance of goods and
products
CHALLENGES FOR INDIAN
LOGISTICS COMPANIES
 Competition from Indian and Foreign logistics
companies.
 Technology to keep pace with demand for real
time information.
 Corporatization and lack of skill sets.
 Shedding local mindset and move to a global
mindset.
 Integration of services and value added
services.
 Funds to fuel expansion & growth.
 Inadequate infrastructure and complex tax laws
FUTURE PROSPECTS
 Many large Indian Corporate have been
attracted by the potential of this sector.
 Large express cargo and courier companies
have also started logistics operations.
 Indian shippers are gradually becoming more
aware of the benefits of logistics
outsourcing.
 Growing Indian economy implies more
outputs and more demand for specialized
logistics
 In India, 1oo% FDI is allowed in logistics.
GOVERNMENT SUPPORT
  Privatizing ports and airports
 Setting up of special economic zones (SEZs) resulting
in increased trade
 Implementing EDI systems.  
 Airport expansion with dedicated cargo terminals
 Improved road infrastructure with better connectivity.
 Foreign direct investments (FDI) in the commercial
vehicle segment
 Streamlining customs and excise procedures.
 Bilateral agreements to promote export-import (EXIM)
trade
 Improving rail networks.
CONCLUSION
India should recognize the extraordinary role
logistics plays in economic development and in
enhancing the competitiveness of all the three
sectors of the economy.
 There is a requirement for an integrated strategy
towards developing logistics and IT infrastructure
and also enhancing its industry base.
 The resources needed for wholesale development
takes enormous amounts of time and resources
 A planned phased approach for Integrated
logistics is needed.
THANK YOU

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