Government initiatives to develop the infrastructure will speed up the growth for express logistics industry in India: Bonafide Research

The ministry of road transport and highways has undertaken development of about 7000 km of national highways under 'Bharatmala pariyojana' at an estimated cost of Rs. 80,000 Crore. Projects like "Bharatmala pariyojana" will increase road connectivity for better transportation. Also, Ministry of Railway has introduced implementation of Eastern Dedicated Freight Corridor (EDFC) and Western Dedicated Freight Corridor (WDFC) with freight train speeds of maximum 100 KMPH. All these government initiatives, to push the infrastructure growth in country, will ramp up the growth of express logistics industry.

India's express logistics industry is poised for accelerated growth. Express Logistics is a key segment of logistics industry for faster movement of parcel. Businesses need express logistics services for reaching out to the customers within tight timelines, delivering products, spare parts, samples, contract letters etc. India express logistics sector is primarily categorized into four segments that include surface express, air express, rail parcel and Indian postal services. Surface express logistics contributes the maximum market share followed by air express and rail parcels. By creating an integrated chain including multi-modal transport modes, both air and surface, express industry has fine-tuned the logistics process for time bound deliveries of shipments across domestic and international regions.

According to recently published report of Bonafide Research "India Express Logistics Market Overview, 2022-28", express is a premium segment of the logistics industry and is expected to grow with more than 15% CAGR in the coming few years. The growth of the express logistics industry will be driven by major customer segments like auto components, banking & finance, garments, pharmaceutical, IT hardware and mobile phones.

In addition, new segments like organized retail, e-commerce and others are also expected to emerge as major customer segments in the medium term. Indian government has taken various initiatives to promote the manufacturing sector and infrastructure development in the country. Major investment made by public and private sectors in the last five years on infrastructure, technology up gradation, expansion of sea and airport facilities, and dedicated logistics corridor in the rail network are expected to strengthen the Indian logistics infrastructure. The booming e-commerce market in India is also bringing in new opportunities for logistics service providers.
Express industry provides logistic services for movement of time sensitive shipments and it gives end to end logistic solutions, time bound services, tracking and delivery confirmation with global reach. Because of the premium pricing, express is a small segment but the level of integration and ability to delivery within short timelines is amongst the highest in the logistics industry. Express logistics has large number of players and the intensity of the competition is also high for the industry in general. However, the industry leaders with ability to differentiate on service quality and network are in a relatively better position. GST implementation has changed the taxation structure nationwide and will transform the distribution structure of majority of industries as it eliminates the need for dedicated warehouses for each individual administrative region. GST regime and e-commerce are expected to alter the landscape in warehousing, supply chain management and third party logistics business.

Major companies operating in the express logistics market of India are Gati Limited, Blue Dart Express Limited, Safexpress Private Limited, Transport Corporation of India Limited and FedEx Express Transportation & Supply Chain Services (India) Pvt. Ltd.

Contact Us
Bonafide Research & Marketing Pvt. Ltd.
Steven Thomas – Sales & Marketing Manager
E-mail: sales@bonafideresearch.com
Telephone: +91-265-2331309/ +91-7878231309
Website: http://bonafideresearch.com/