The market size of the logistics sector is seen climbing to $215 billion by 2020, logging
10.5 per cent compounded annual growth rate (CAGR) over 2017. The logistics sector earned the
'infrastructure' status in 2017 when its market size was estimated at $160 billion. Traditionally, steep
logistics costs are a grave concern in India. By the end of 2017-18, logistics expenses accounted for 14
per cent of the GDP. The share is set to shrink to 10 per cent by 2022.
Going by expert views about the logistics sector in India, over time it has improved a
lot. This is mainly because of the increased growth in the Indian economy, which has directly resulted
in a rise in the amount of freight traffic that needs to be moved. This increase also led to an increase
in scope in aspects such as transportation, warehousing, shipping services, express cargo delivery,
container services and the like.
Currently the logistics sector employs around 82.4 lakh people as of second half of 2018-19. The
penetration of e-commerce companies to tier II and III cities has created an increased demand for talent
in this sector," Teamlease Services head of industrial, manufacturing and engineering vertical Sudeep
Sen said.
The sector is forecast to witness 14.19 per cent job growth. Railways, waterways, air freight and
warehousing are the areas wherein talent absorption will be the highest.
