The logistics and supply chain market in India is booming courtesy of the growing economy, increasing e-commerce activities, and significant infrastructure development. The market share of the industry stood at INR 24 trillion in 2022 and the same is expected to grow at roughly 10-12% CAGR for the next five years. The National Logistics Policy and Bharatmala Pariyojana program are two examples of government momentum towards infrastructural enhancement and connectivity.

The available growth is also attributed to the rapid expansion of e-commerce in India which is forecasted to hit an e-commerce segment of INR 10 Trillion by 2027, creating significant last mile delivery, warehousing and logistics services requirements. Other emerging trends include - use of digital tools such as AI, blockchain and the internet of things as well as the increase in sustainability.

International players like DHL, FedEx, and Blue Dart are expanding their reach into India, while home grown companies like Delhivery, Ekart and GMR Group are seeking to grow in technology and the necessary infrastructure. Since the market is expected to grow to INR 45 trillion by 2027, companies can take advantage of the new and existing opportunities and also enhance their effectiveness.

The opportunities in India’s logistics and supply chain sector are likely to cut across the entire value chain of these services, from warehousing, and transportation to last-mile delivery. Government investments in infrastructure development, increasing e-commerce activities, and growing need for efficient logistics services will propel the growth.