The latest issue of "CSCMP's Global Perspectives" provides an update on developments, trends, and challenges in the Indian economy and market and how they impact logistics and supply chain management (SCM) services in that country.
With the growing interest in emerging economies like India, opportunities are also increasing for businesses and investors interested in tackling infrastructure development, third-party logistics (3PL) and fourth-party logistics (4PL) operations, and technology adoption. The Indian government is making this sector a priority through its successive Five-Year Plans (Eleventh 2007-2012 and Twelfth 2012-2017), with the aim of finding improved solutions for logistics, infrastructure, and taxation issues.
The implementation of policies and projects like dedicated freight corridors, free-trade and warehousing zones, public-private partnerships, and foreign direct investments are bringing about noticeable changes. India is ready for change, say supply chain management professionals there, but how the country tackles growing demand and expectations may depend to some degree on the political climate that emerges in 2014.
The research revealed that the Indian transportation and logistics industry is at a crossroads and is on a trajectory to growth. With gross domestic product (GDP) of about US $1.8 trillion in 2012-13, India spent 13-14 percent of its GDP on logistics—thus creating an industry worth $237 billion.
Indian organizations are moving toward a different outlook in terms of logistics service providers, skilled logistics, and supply chain management staffing, in part through the increased adoption of technology like enterprise resource planning (ERP) systems, Web-based applications, social media, bar coding, geographic positioning systems (GPS), radio frequency identification (RFID), and so forth. In addition, more institutions are offering educational and certification programs to develop industry-ready professionals.
In light of those developments, as well as tax reforms like those affecting the Goods and Services Tax (GST) and the recognition of logistics and SCM moving up the value chain, the authors say that the near future shows much promise for India as it becomes better able to compete in an ever-changing global marketplace.
The 56-page CSCMP's Global Perspectives: India 2104 report is free to members as an e-publication.