Know The Current Scenario And Future Of The Logistics Industry by Truck Guru

Know The Current Scenario And Future Of The Logistics Industry

The Indian logistics industry is evolving rapidly. In fact, this sector has been the holding beam for almost every enterprise structure around the globe. Domestic rating agency ICRA has predicted that the Indian logistics industry is expected to grow at a rate of 8-10% over the medium period. Logistics companies in Chennai and many other cities in India are facing challenges such as high cost of logistics impacting competitiveness in the local and international market, the poor infrastructure of material handling, uneven warehousing and lack of seamless movement of goods across different transportation modes, etc. Despite all of this, the industry is offering opportunities to more than 22 million people. In the past five years, the logistics industry has grown at the compound annual growth rate (CAGR) of 7.8 % and is currently estimated to be around US$ 160 billion. According to the Economic Survey 2017-18, with GST rollout, the sector is expected to benefit and reach US$ 215 billion in consecutive two years. The growth of the logistics industry, in the last couple of years, is reflected in the global rankings. As per the Global Ranking of the World Bank's 2016 Logistics Performance Index, in 2016, India soared to 35th rank from 54th rank in 2014 in terms of logistics performance. The report also revealed that the logistics sector in India has enhanced its performance on all the parameters which are used in determining the ranking. Logistics companies in Chennai believe that this is a big jump of 20 levels and it clearly reflects the sector development. ÂŠ TruckGuru LLP | All Rights Reserved.

There are multiple aspects which are driving this industry towards growth and success. The logistics growth is two sided which is controlled by demand and supply. The growth led by demand is supported by the economic recovery and advantages of GST implementation. After GST implementation, the savings in terms of truck turnaround time has been around 18-20 %, according to the rating agency ICRA. Furthermore, the outsourcing of activities such as warehousing and other related activities to integrated companies is helping to strengthen the organized players, which in turn is better for the sector in the long run. Another factor to drive the growth of the logistics industry in India is the picking of industrial consumption. The supply-led growth drivers incorporate the development in logistics infrastructure, combined logistics and numerous logistics start-ups, particularly tech led start-ups. Tech-enabled start-ups have a big scope to develop as well drive the growth of the industry, according to an industry expert.

TruckGuru is contributing to the growth of the Indian logistics industry? TruckGuru, one of the best logistics companies in Chennai is offering its advanced, high-quality and affordable logistics services to its customers. They are using the modern technology and high-tech tool to improve their services, earning revenues and ultimately contribute to the growth of the logistics sector.