Logistics Industry is Scaling Across India

Written by Wasi  »  Updated on: January 27th, 2025

India is undergoing robust government policies and initiatives for revolutionizing infrastructural development and reducing logistics costs. Such as the establishment of SEZs has led to improved logistics infrastructure, reduced transportation costs, and enhanced supply chain efficiency, making India an attractive destination for global trade and investment. These prominent factors signify the exponential growth of the logistics market in India.

What is Logistics

Logistics is the process of moving goods to and from locations wherever required. Logistics management ensures that the right amount of goods arrive safely at those locations, exactly when required.

Logistics ensure that:

  • Materials are ready for manufacturers
  • Products are stocked and organized in warehouses
  • Stores have enough inventory to meet customer demand
  • Purchased items are picked and shipped efficiently
  • Returned items make it back to the vendor smoothly

Prominent Examples of Logistics

  • Inventory Management Logistics: Effective inventory management informs employees of stocking issues and allows them to locate and package items for customer orders quickly.
  • Transportation Management Logistics: Planning and coordinating the movement of goods between locations is another essential logistics activity. Transportation management is often divided into two categories: Inbound transportation and Outbound transportation
  • Warehouse Logistics: Warehousing is the process of storing goods safely and efficiently.
  • Order Fulfillment: Order fulfillment involves promptly picking, packing, and shipping orders. Tasks include creating invoices, printing shipping labels, working with carriers, and handling returns (a process known as reverse logistics).
  • Demand Planning Logistics: Demand planning involves forecasting customer needs to ensure you have enough inventory when orders surge or when external factors affect product demand.

Key Components of an Effective Logistics System

The fundamental elements of an efficient logistics system include: warehousing, inventory control, material handling, packaging, and transportation.

Benefits and Drawbacks of Logistics

Advantages:

  • Improved customer experience: Fulfilling orders quickly and accurately can improve customer satisfaction and loyalty
  • Reduced costs: Globalized distribution systems can reduce transport costs
  • Increased visibility: Real-time inventory tracking can help with supply chain management
  • Competitive edge: Logistics services can help improve customer care and ensure goods are delivered on time
  • Scalability: Third-party logistics (3PLs) can help companies enter new markets

Disadvantages:

  • Logistics complexity: Integrating eco-logistics processes may require significant changes to the supply chain
  • Separate allocation of orders: It can be difficult to completely monitor how orders are allocated to courier partners
  • Dependence on specific infrastructure: Some sustainable solutions may require specific infrastructure, such as efficient transportation networks

India Logistics Industry Analytical Overview (2025-30)

The report comprises “India Logistics Market Research Report: By Service (Transportation Services, Warehousing & Distribution Services, Freight Forwarding Services, Inventory Management Services, Value Added Logistics Services, Integration & Consulting Services), By Category (Conventional Logistics, E-Commerce Logistics), By Model (2PL, 3PL, 4PL), By Type (Forward Logistics, Reverse Logistics), By Operation (Domestic, International), By Mode of Transport (Roadways, Waterways, Airways, Railways) and Other Forecast (2025-2030)”, according to the report, the India Logistics Market size was valued at around USD 230 billion in 2024 and is projected to reach USD 360 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 8% during the forecast period, i.e., 2025-30.

Something New About Growing Industry

The growing adoption of multiple logistics parks is paving lucrative openings for the expansion of the logistics industry. The intention of improving the logistically driven infrastructure of the country and augmenting international trade is encoded in the government’s take on establishing multi-modal logistics parks. This facilitates intermodal transport to facilitate sustainable and efficient movement of goods, therefore propelling the growth of the India Logistics industry. Additionally, the rising integration of automation and robotics for multiple tasks like sorting, packing & material handling aids in the improvement of order fulfillment rates, therefore resulting in exponential growth of the India logistics industry.

Key Players Operating in Logistics Market

FM Logistics, Gati, Mahindra Logistics, Ekart Logistics, Blue Dart, DTDC, Ecom Express, DHL, Delhivery, FedEx, Xpressbees, Shadowfax, Aramex, Shiprocket Fulfillment, Transport Corporation of India Ltd. (TCI), Allcargo Logistics Ltd., and others are the leading players essentially operating in the Logistics market.

Recent Achievements of Industry Players: Strengthening Indian Market

Here are the highlights of the latest initiatives:

  • Xpressbees in 2024 is diving into the quick-commerce sector amid an uptick in demand on Swiggy Instamart, Blinkit, Zepto, and others.
  • DTDC collaborated with Skye Air Mobility in 2024, to introduced last-mile drone-based deliveries. It started with a successful 7.5 km delivery from Bilaspur to Gurgaon sector 92.

Summary

The article comprises Indian players in the logistics industry, along with industry product information. This article details the prominent factors behind the surging demand for futuristic growth and new opportunities that facilitate market development. Market players such as FM Logistics, Gati, Mahindra Logistics, Ekart Logistics, Blue Dart, DTDC, Ecom Express, DHL, Delhivery, FedEx, and Other leading companies, facilitate revolutionizing the market and promoting a secure future for the Indian logistics industry.

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