India’s trucking sector is under pressure today.
70% of India’s domestic freight is moved by owner-drivers and micro fleet operators.
Rising diesel prices, higher financing costs, compliance expenses and an acute driver shortage are squeezing profitability.
As PM Gati Shakti and the National Logistics Policy improve connectivity, reduce logistics bottlenecks and enable technology-led supply chains, organised logistics companies may be better positioned to gain market share over time.
The most important pointers to look for:
The government’s long-term objective is to bring India’s logistics cost from ~13–14% of GDP to single digits, making Indian manufacturing more globally competitive.
The National Logistics Policy aims to improve India’s Logistics Performance Index (LPI) ranking into the global top 25 by 2030.
(Present Rank: 38th/139 countries up from 44th position in 2018)
Some key points seen after execution of policies:
✓ Port turnaround time: 44 hrs → 26 hrs
✓ 1,500+ infrastructure data layers integrated between centre and states
✓ 30+ logistics systems connected through ULIP(Unified Logistics Interface Platform)
✓35 Multi-Modal Logistics Parks are being developed
✓40 air cargo terminals have been developed, 30 airports have cold-storage facilities, and 60 airports support Krishi Udaan, strengthening agricultural and perishable logistics.
Source: https://lnkd.in/dRb7VhW7
Who stands to benefit as the industry evolves?
Consolidation, digitisation, and supply chain optimisation could strengthen the competitive position of organised logistics players over the long term.
At Care PMS, we continue to look for and invest in businesses that can benefit from such structural shifts.
