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Market Update
Logistics Investment

Where is the logistics

investment going?

The remarkable rise of the Indian economy has significantly fueled the need for logistics services.
The logistics business is witnessing investments, but which sector is attracting the most investors?

Zinal Dedhia
n September 2022, Prime Minister resulted in an influx of investment in
Narendra Modi announced the the e-commerce market, levelling the
new National Logistics Policy playing field for new competitors,”
I(NLP), which aims to reduce said Nisschal Jaain, CEO and Co-
logistics costs in India from the founder, Shypmax.
current 14-18 percent of the country's When asked what factors an investor
GDP to the global best of roughly 8 considers before making an investment,
percent by 2030 and to create a data- Abhijit Verma, MD, AA Holdings said,
driven decision support mechanism “When we start investing, we work with
for an efficient logistics ecosystem. the entrepreneur and their business.
The media is flooded with headlines I believe in a wide range of awareness
about investments in new logistic parks and capacity models. We not only
and warehouses, but how much money supply the necessary funds, but
is being invested in the transportation we also provide soft resources
and logistics sectors to guarantee The competition is experience and networks,
that freight arrives at these facilities increasing. These new- which is something I
smoothly and on time? age firms are discussing constantly consider.
concepts, but as an As we all know, 90%
Logistics industry today of the market is
In recent years, the Indian logistics investor, I see efficiencies, fragmented and
sector has grown significantly. how my money will be transitioning from
The country's robust retail and saved and how my money
manufacturing environment has allowed will increase organically.
it to resume growth that was slowed by
the Covid-19 pandemic. Abhijit Verma
“The Indian e-commerce industry, AA Holdings
currently worth $84 billion, is
projected to grow at a 24% CAGR and
is expected to reach $350 billion by
2030. This can be achieved through
greater investment and innovation in
the logistics sector, as propelled
by the government’s National
Logistics Policy, ULIP, and
other initiatives, as well
as the recent rise
in technological
literacy,
which has

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