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Through initiatives such as the National
Logistic Policy, ULIP, etc. as well as
the recent rise in digital awareness, the
Indian government has recently placed
a renewed emphasis on investing in
the nation's logistics infrastructure.
This has led to an influx of investment
in the e-commerce market, which is
predicted to grow in the next couple of
years,” said Jaain.
In the coming years, growth is
estimated to range between 9 and
10%, with a compound annual growth
rate (CAGR) of 7-8%. The exponential
rise of the Indian economy is likely to
accelerate this growth.
“In the future, investors will give
more importance to product plus
software companies in this space. In
logistics, reliability and end-to-end
services are the need of the hour.
There will be a lot of consolidations
happening in the form of mergers and
acquisitions which will be interesting
to see. Investments will start flowing
towards future mobility tech like fuel
cells,” said Sasikumar.
A number of development factors,
including advancements in digital
technology, evolving consumer tastes
brought about by e-commerce,
I see efficiencies, how my money governmental reforms, and changes in
will be saved and how my money will service sourcing methods, are expected
increase organically. If I'm looking to lead to the transformation of the
forward to my investment, I'm looking Indian logistics ecosystem.
for metrics of efficiency and how well “The transport and logistics industry
they (the companies) understand their has a promising future. We must
structure, system, and people. These tighten our belts and begin working
are the factors, and this is where they toward modernisation or digitisation in
encounter difficulties. The startups will order to provide future-ready services
view things from their perspective; they and value-added services because
will not see things from the investor's this sector will change dramatically
perspective; this is the only difference.” in the next five years. In any case, the
investment is doing quite well. Every
Future of investments year, a billion-dollar investment
With increasing e-commerce sales, From the perspective occurs in the warehousing industry,
India's logistics sector has had a of venture capital (VC) plus the government is spending
remarkable expansion since Covid-19. funding, enough dry money on road transportation, one
The logistics sector is estimated to be a powder is available in of the pioneers of the Indian logistics
$320 billion market, with the last-mile the market to invest. But industry,” Verma added.
alone accounting for 18% of the entire the valuations are cut, The government's initiatives will
logistics industry in India and expected propel the logistics sector forward.
to be worth $6 billion by 2024. investors are looking Investors are actively seeking for firms
“India's logistics industry has at paths to profitability to invest in, as long as their worries are
traditionally emphasised adaptability, and moats which are addressed and the company provides
agility, and tenacity. With the demand sustainable. a high return. The future of the Indian
for better quality services steadily logistics sector will witness significant
rising over the past few decades, it has Visakh Sasikumar infrastructural expansion, resulting in
had a turbulent but promising journey. Fyn Mobility the sector becoming digital.
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