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Steering India’s Logistics Landscape: Key Trends to Watch in 2023


In India, the logistics sector is going through a transformation that is being fueled by several significant factors.

Certain major trends are expected to influence logistics in India for years to come, including changes in consumer behavior, infrastructural improvements, and technological breakthroughs. This article will look at these trends and how they could affect the market in 2023.

Logistics trends that will accelerate in 2023 in India

The National Logistics Policy and its effects on logistics and global trade in India

India’s National Logistics Policy can boost both domestic and international trade. Lowering prices, improving efficiency, and utilizing more technology will boost India’s logistics industry’s competitiveness as it combines multiple logistical services and builds a seamless supply chain network. The policy also prioritizes the construction of multi-modal transportation infrastructure, such as ports, airports, and roads, which will enhance connectivity and lessen supply chain bottlenecks.

The National Logistics Policy intends to provide a comprehensive agenda for developing the logistics sector. In contrast, the National Master Plan focuses on developing integrated infrastructure and network planning for efficiency in services (processes, digital systems, regulatory framework) and human resources. By putting these measures in place, India’s national logistics policy can attract investment and create job opportunities.

Rise of Cross-Border E-commerce amongst the Indian Consumer

The fast expansion of e-commerce has had a significant influence on the logistics business. According to a logistic e-commerce handbook, the next wave of e-commerce development will be driven by consumers’ increased demand for international items and increased MSMEs (Micro, Small, and Medium Businesses) selling internationally. Millennials now make up 73% of all professional purchase decisions and expect an online interface. As a result, the need for efficient and reliable delivery services has increased with more consumers resorting to online shopping. Cross-border digital markets have seen great economic growth overall.

Hence, businesses must adjust to address the difficulties presented by cross-border delivery, such as customs and duty laws, linguistic obstacles, and various payment options.  Logistics firms with a robust network and digital infrastructure and the ability to provide end-to-end solutions and support for cross-border e-commerce will be best positioned to service these new-age buyers.

Growth in smaller and rural markets

D2C customers are becoming more prevalent, particularly in Tier II, III, IV, and rural sectors.  According to a knowledge center for global investors,  the Indian e-commerce business would grow by 50–60% in D2C and new categories by 2030, reaching USD 350 billion.

This development is the consequence of enhanced digital payment and banking systems and improved and faster internet access. Yet, the capacity to meet the increasing demand for fast and reliable last-mile delivery service is also required in this situation.

ONDC works to link suppliers, wholesalers, and retailers using technology and data analytics to automate and simplify the retail supply chain. In theory, this will result in a supply chain that is more effective, transparent, and efficient and where demand is matched to the nearest provider.

Green logistics is becoming a priority

The general population is becoming more conscious of climate change, changing business operations. Governments and businesses are committing to reducing carbon emissions and improving sustainability. This involves using electric cars and alternative energy sources to achieve low-carbon solutions. Consumers are searching for better options, such as shopping with “green” companies and choosing sustainable delivery methods, since they are becoming more conscious of the environmental effect of their purchases.

The World Economic Forum estimates that switching to a net-zero supply chain will only result in an average price increase of 4%. As a result, there is greater demand than ever for the logistics sector to be carbon-neutral or even carbon negative.

Given the significance of supply chains in decarbonization talks and agendas, logistics companies must implement the necessary adjustments as quickly as possible. According to the research, businesses should adjust to meet the demands of a sustainable future. The first commercial four-wheeled electric cars are already appearing on Indian roads as well.

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