New Delhi, Aug 20 India's express logistics sector is projected to reach $18-$22 billion by FY30, doubling in size, a report said on Wednesday.
The sector grew from $3 billion in FY17 to $9 billion in FY25, with a compound annual growth rate of 12 to 15 percent. In FY25, the express industry is supporting 2.8 to 3 million jobs and contributing $1 to $1.5 billion to GST revenues and $650 million to customs revenues, according to the Express Industry Council of India (EICI) report.
Looking ahead, the report said that this sector will act as a vital enabler for e-commerce, MSMEs and cross-border trade, as it has already transformed from a logistics facilitator to an essential service provider.
The sector played a crucial role during the Covid-19 pandemic by supporting the largest vaccination drive and ensuring the priority delivery of essential goods, it said. Post-pandemic growth is being driven by high internet and smartphone penetration, exponential growth of e-commerce, the rise of MSME output and significant infrastructure expansion into tier 2 and 3 cities, the report said.
"Enhancing operational efficiency through digitisation and automation, while exploring growth opportunities such as positioning India as a trans-shipment hub, will further advance the sector," said Girish Nair from KPMG in India.
Domestic express accounts for about 70 per cent of the total market, valued at $6.3 to 6.5 billion, with surface express contributing the largest share. The international express segment, with a share of around 30 per cent, handled 19.5 million shipments weighing approximately 1,52,300 tones in FY24, registering an average growth rate of 18 per cent between FY21 and FY24.
Growth in this segment is being fueled by the increased global appetite for 'Made in India' products, including handicrafts, ethnic wear, home furnishings, auto components and other manufactured goods.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor