The supply of goods and services shows the economic power of a nation. According to the World Bank’s logistics performance index, India ranks in 38th position. The overall logistics and supply chain plays a significant role in enhancing the country's development. The production and supply of goods decide the market value and efficiency of how well the system is working. Logistics is not only a particular segment of road rather it works through air, water, machinery, warehouse, supply chain and ports.
Today the USA is rich not because of wealth or any other things. It is rich only because of its logistics and supply chain management, which makes it an economically developed state. When you compare India with other nations, we lack behind others for various reasons. Logistics and supply chain are considered a lifeline for every country. After the launch of GST in India and the impact of trade and supply has taken a sharp rise across India. The government also launched a national logistics policy along with PM Gati Shakti and a national master plan to develop the overall logistics infrastructure across the nation. According to data, India wastes 16% of its goods on agriculture just because of logistical and supply chain only. Right now, India has approximately 22 million employees working in the logistics industry and the increase is expected to rise with time. The market value is around 28 lakh crore, but it has the potential to reach up to 48 lakh crore.
The biggest drawbacks of logistics are infrastructure shortages in roads, ports, supply chain system, toll fees, taxes, high fuel consumption and cost, long delays in delivery and making it expensive to deliver across India. Previously, the policies which we lacked put us behind and almost 14% of India's GDP came from logistics costs only. India wants to achieve the time frame compared to other nations from 48 hours to 24 hours. Even government-run logistics have turned into a profit motive, especially when India Post is trying to compete with private players like Delhivery, Ekart, Shadowfox and Ecom Express.
In the Logistics Industry, Singapore and Germany are key logistics leaders in this sector. Playing a significant role in the world logistics framework. They both handle key ports and entire world logistics supply passes through these 2 countries, which makes them strategically and technically a rich logistic hub. When it comes to India, the vision towards supply and logistics is expected to reach great heights by 2047, making it a world-class logistics and supply hub in the world.
