Page 19 - ITLN-September-October-2024-Issue-for-Website

Recently, at the annual convention Additionally, many smaller players The rise of smart logistics in India:
and 95th Annual General Meeting have yet to fully adopt digital solutions The Indian logistics sector is
(AGM) of the Federation of Indian and data-driven approaches, which witnessing a paradigm shift towards
Chambers of Commerce and Industry limits the sector's overall efficiency. smart, intelligence-led operations,
(FICCI), Union Minister Nitin Gadkari, “The Indian logistics market driven by a confluence of factors. The
Minister of Road Transport and presents unique challenges and government's push for digitisation
Highways of India, committed to opportunities, where visibility (our through initiatives like Digital India
reducing logistics costs — from the ability to see) and agility (our ability and the National Logistics Policy has
current 16 per cent of GDP to a target to respond) are crucial. Imagine created a conducive environment
of up to 9 per cent by the end of 2024. driving with a completely blackened for technological adoption.
Comparing this target to developed windshield—visibility is impaired, Simultaneously, the e-commerce
economies, where logistics costs increasing the risk of adverse boom has driven the need for more
range from 8 to 10 per cent of GDP, scenarios. On the other hand, having efficient and data-driven logistics
this highlights significant room for a clear windshield but lacking driving solutions to meet growing consumer
improvement. skills means you can see but not demands. According to Statista, the
However, the National Council of respond effectively,” says Nitish Rai, e-commerce industry in India is
Applied Economic Research (NCAER) Founder and CEO, FreightFox. projected to reach $300 billion by 2030.
reported that logistics costs in India FreightFox, a tech-focused start- “The rapid growth of digital
ranged from 7.8 per cent to 8.9 per up in the Indian logistics sector, infrastructure, supported
cent of GDP for the 2021-22 period. is developing products to create by initiatives like Digital
Logistics cost as a percentage of an end-to-end enterprise freight India, is helping address
GDP is a metric used to measure the procurement and management challenges in the
efficiency of a country's supply chain platform that leverages predictive logistics sector. As
and transportation infrastructure. and proactive insights. internet connectivity

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