Reliant Logistics Institute


Growth of Logistics Industry


Rapid growth in industries like vehicles, prescribed drugs, fast-moving
consumer goods (FMCG) and retail has considerably accumulated the demand for movement of shopper and capital product across the country, from entry ports to producing or distribution locations or from manufacturers and distributors to shoppers and exit ports.
The volume of freight traffic is absolutely regarding the GDP of the country. Therefore, as the GDP increases the goods’ movement is anticipated to extend through all modes. from 2007-2012, the agriculture and producing GDP have accumulated from 263.6 billion to
290.7 billion at constant costs. The corresponding increase in freight traffic was from one trillion tonne kilometers (TTK) to two TTK.

Globalisation: With the growing integration of India’s economy , the country’s total trade has mature at a concerning twenty per cent from US$ fifty seven billion in 1997-98 to US$ 862 billion in 2012-13.The initiative to construct a trilateral main road connecting Asian country represents an important step within the institution of property between India and Southeast Asian countries. The highway is anticipated to be operational within the year 2015-16 and is probably going to spice up trade ties of India with other countries. The increase in international trade has established corresponding growth in cross-border freight traffic,

The Government of India has initiated many policy measures and programmers
to attract investments in developing the supplying infrastructure of the country.A number of the key reforms undertaken by the government of India focuses on several measures. The government permits hundred per cent FDI beneath the automated route for all supplying services, except airways and traveler services. For transportation services as well as airways services, the limit was enhanced from forty nine per cent to seventy four per cent in 2008. Also, FDI of up to hundred percent is allowable for traveler services, subject to Foreign Investment Promotion Board (FIPB )approval. The government has considerably increased the investment allotted for the event of supplying infrastructure as well as ports, airports, national highways,supplying parks, freight stations and corridors. Many measures are undertaken by the government of India to encourage personal sector participation within the supplying trade across all modes. These measures include increasing targeted contributions of personal players within the investments put aside for the development of supplying infrastructure, tax exemptions and duty free imports. Aside from rushing up capability creation, this is often conjointly aimed towards incorporating latest technologies and higher management practices. The projected introduction of the products and Services Tax (GST) is expected to considerably bring down the overall prices of the supplying trade.

At present, most firms have originated multiple tiny warehouses of 10,000 square foot across the country to save lots of taxes on inter-state movement. However with the implementation of GST, the necessity to own many tiny warehouse sis likely to be eased in favor of larger and consolidated warehouses at strategic locations. The logistics trade stands to learn from the increasing trend of outsourcing the provision and deposit perform to 3rd party service suppliers. This was historically performed by the organisations themselves. However, company entities recognise the advantages associated in partaking a third-party provision supplier for integration of knowledge flow, material handling, production, packaging, inventory, transportation, deposit and sometimes security. This enables corporate entities to think about their core business and conjointly avail of great discounts through outsourcing. logistics colleges in kerala


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