The importance of logistics in GDP development

Logistics has become an important aspect of the economy in today’s world of hyperlocal delivery and real-time inventory management. Every sector in our country relies on logistics. The industry assumes one of the most important roles, that of goods transportation, and hence creates jobs and helps to economic progress. Logistics is important in all markets, from agricultural, medicines, and transportation to e-commerce, medical, and manufacturing.

The importance of logistics in GDP development the logistics industry in India accounts for 14.4% of the country’s GDP:

Furthermore, technical improvements and the government’s promotion of local manufacturing through the “Make in India” initiative are aiding the industry’s growth. Currently, the industry employs about 22 million people in tier-I, tier-II, and tier-III cities. It is still creating job prospects for the unorganized labour force. Logistics will produce even more employment in the future as the National Logistics Policy (NLP) strategy boosts the sector. Another 1.2 million jobs with skill sets in data analysis, business intelligence, real-time technology application, and so on are predicted to be added by FY2025. As a result, the industry will significantly contribute to India’s social and economic growth. Our country will also emerge as a worldwide hub for competent supply chain resources. India will eventually reach a point where global corporations would look to us to outsource knowledge-based employment in the logistics industry as well.

To summarize

The logistics sector is expanding and appears to have a promising future. The recently announced National Logistics Policy (NLP) will be a crucial element in hastening this growth. If successfully implemented, this effort would usher in a new era of multimodal transportation and position India as a worldwide leader in the digital and paperless logistics sector. In the long run, the goal is to reduce logistical costs to single digits. As a result, logistics will create over a million employment in a variety of areas. The market will also play an important role in helping the government achieve its goal of becoming a $5 trillion economy.