siliconindia | | July 202019THE CURRENT LOGISTICS SCENARIO IN INDIA By Vijay Ghogale, VP ­ Sales & Operations, Capricorn Logisticshe Indian Logistics sector is poised to grow at a phenom-enal rate over the next two-three years. Presently it is pegged at around $160 bil-lion and is expected to reach around $200+ billion in a couple of years; the implementation of the Goods and Services Tax being one of the major reasons for the increase in this sector.For our country to be placed high-er up in the global supply chain hier-archy, we thus need the logistics sec-tor to have a clear and a sustainable growth map for the next few years. This in turn will not only add great value to the Indian economy, but will generate more jobs and will increase our exports manifold.Due to the efforts of Government of India (GoI), such as Make in In-dia programme and improvements in infrastructure along with the stream-lining and digitalization of Customs processes, the country's position bet-tered from 54 in 2014, to 44 in 2018 in the World Bank (WB)'s Logistics Performance Index (LPI), in terms of overall logistics performance. Ger-many has retained its number one po-sition throughout in the LPI rankings.There exists a tremendous scope for further jump in India's rankings if the existing infrastructural and cost inefficiencies are addressed. The Sur-vey goes on to identify the challenges that affect the Indian logistics indus-try adversely, the foremost of which is it being largely in the unorganized realm. The other challenges hinder-ing its growth include high cost, underdeveloped material handling infrastructure, fragmented warehous-ing, presence of multiple regulatory and policy making entities, lack of seamless movement of goods across modes, and poor integration with modern information technology. These challenges, particularly the ones pertaining to procedural com-With his vast knowledge & experience in the area of supply chain, operations and logistics management, Vijay plays a major role in expanding the company's customer base worldwide.CXO INSIGHTST
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