The integration of technology and logistics has emerged as a pivotal force in India, unleashing the country’s economic prospects and driving sustainable development. The resurgence of supply chain and technology in India can be attributed to the convergence of e-commerce growth, government initiatives promoting EXIM trade, and the imperative for resilience revealed by global disruptions such as the Covid-19 pandemic.
Initiatives by the government, such as Make in India, and the introduction of technology-driven initiatives like e-WayBill, Goods and Services Tax, and Gati Shakti, are facilitating automation and creating substantial synergies in the logistics sector. These efforts are further amplified by a range of emerging technologies, accelerating India’s progress towards becoming a global leader in technology-driven logistics.
The introduction of the government initiative Gati Shakti in 2019 has initiated a national infrastructure project pipeline worth Rs. 110 lakh crore, aimed at developing highways, waterways, and other infrastructure projects. These developments will enhance the speed, agility, and cost competitiveness of Indian logistics and supply chains, ultimately reducing logistics costs and mitigating inflationary trends from a macroeconomic standpoint.
Forecasts indicate that India’s logistics market is anticipated to grow from $274 billion in 2022 to $563 billion in 2030, at a compound annual growth rate of 9.4%. With a consumer base of 1.4 billion, and over half of the population under 30, the country is poised for substantial growth in the consumption sector in the coming decades. Despite this potential, India currently bears a higher logistics cost as a percentage of GDP at 14%, in comparison to the BRICS average of 11%.
The logistics industry in India has witnessed numerous technological advancements, with cutting-edge products and solutions tailored to address the complexities of the Indian logistics sector. These include mainstream technologies such as Artificial Intelligence and Machine Learning, Internet of Things and Sensors, Cloud Computing and Software-As-A-Service, Predictive and Prescriptive Analytics, Augmented Reality and Virtual Reality, Robotic Process Automation, and Autonomous Vehicles.
These technologies are being harnessed to enhance various facets of the logistics industry. For instance, Artificial Intelligence and Machine Learning are being employed to analyse substantial volumes of data generated by logistics operations, generating actionable insights and visibility. Meanwhile, Internet of Things and Sensors are utilised to track shipments, monitor vehicle performance, and optimise warehouse operations.
The synergies between technology and logistics are not only pivotal for unlocking India’s economic potential and fostering sustainable growth, but also for shaping the new India. This presents an opportunity for India to develop logistics products and innovations that can be exported to other nations, showcasing the technological expertise and ingenuity of its engineers.
In conclusion, it is evident that India’s logistics landscape is being transformed by technology, creating a more efficient and cost-effective ecosystem. The convergence of technology and logistics not only benefits India’s economic growth but also has the potential to position India as a global leader in the technology-led logistics sector.
Kapil Mahajan, Global Chief Information and Technology Officer at Allcargo Logistics, asserts that the fusion of technology and logistics is essential for unlocking India’s economic potential and promoting sustainable growth. His insights shed light on the transformative impact of technology on India’s logistics industry, setting the stage for the country’s future as a global logistics powerhouse.