The logistics industry in India is grappling with significant challenges, including inadequate road infrastructure, limited land availability for warehousing, and a skilled workforce shortage, experts say. Deepak Sood, Secretary General of Assocham, emphasized the growing demand for warehousing near metropolitan areas due to rising economic activities. However, fragmentation within the sector has led to inefficiencies, lack of standardization, and scalability issues.
Supply chain efficiency is also hampered by road congestion and delays, noted Srikumar Krishnamurthy, Senior Vice President of Icra Ltd. Competitive pressures, inflation, and high diesel prices further strain logistics companies, while rising operational costs and regulatory hurdles push firms to adopt balanced cost management and technological investments.
JD Yadav, founder of BookMyCargo, highlighted the industry’s focus on supply chain resilience through diversification of suppliers and investment in flexible operations. Technology adoption, including automation, AI, and IoT, is on the rise to mitigate labor costs and improve efficiency.
Experts remain optimistic about the sector’s outlook, driven by government initiatives and stable demand across industries like e-commerce, FMCG, and pharmaceuticals. The festive season is expected to bolster last-mile delivery infrastructure, ensuring steady growth into H2 FY25.
