By James Mathew
India's logistics industry, currently estimated to be worth around $160 billion, is projected to reach $215 billion in the next two years
A number of warehouse companies, freight operators and investors in the logistics sector from UAE and other Middle East countries are among the 200 delegates expected to attend the first ever mega international meet on logistics to be hosted by India in early 2019.
The meet, titled 'Logix India 2019', is an initiative taken by India’s trade body FIEO (federation of Indian exporters organizations), along with the Indian government, with the twin objective of inviting various international investment opportunities and tie-ups in the domestic logistic sector and also to promote the country’s international trade.
The three-day event - which will be held in India’s capital city New Delhi between January 31 and February 2 - is the first such platform organized jointly by Indian ministry of commerce and industry and the domestic private sector to facilitate interactions between top executives of various international logistic companies, operators and investors and the Indian logistics industry representatives to explore possible business opportunities.
India’s logistics industry, currently estimated to be worth around $160 billion, is projected to reach $215 billion in the next two years. The sector provides employment to more than 22 million people.
FIEO Director General and CEO Dr Ajay Sahai said the Indian logistics industry, which has been growing at a compounded annual growth rate (CAGR) of 7.8 percent during the last five years, is expected to see a significant jump in its growth rate to a CAGR of 10.5 percent over the next 5 years.
Delegates from about 20 countries are expected to attend the first international meet on logistics being organized in India. The major regions from where the participation is expected are the Middle East, CIS countries, Africa and the ASEAN.
Suresh Prabhu, India’s minister for commerce & industry and civil aviation, said the government is currently working on developing an integrated logistics development policy to give a big boost to the industry.
“If promoted in the right way, India’s logistics industry in itself will emerge as a big industry, with potential to attract billions of dollars in investments and generating millions of jobs,” he said.
The minister said his ministry will work along with the private sector to address all the bottlenecks impacting the growth of the industry so that the full potential of this sector can be achieved over the next few years.
Industry analysts said when the country’s logistics sector gets developed to the international level, it will automatically lead to a quantum jump in India’s international trade.
Lack of well developed infrastructure and logistic facilities are seen to be major reasons impacting India’s international trade and as a corollary its ambitions to emerge as a major international manufacturing hub to the world, replacing China which is fast losing its position as the world’s factory because of the rising production and labour costs there.
“If the government comes up with the right kind of investor-friendly and long-term policy measures and reform India’s labour policies, India can attract huge international investments, including from neighbouring regions such as UAE and Middle East, in the domestic logistics industry,” an industry analyst said.