India’s logistics sector, one of the largest globally, is undergoing a significant transformation, according to a recent report titled “A Report on Future Talent Requirements in Logistics.” The study, authored by notable experts like Ashish Chouhan (CEO and MD of National Stock Exchange), Manoj K. Tiwari (Director, IIM Mumbai), S.G. Deshmukh (Professor, IIT Delhi), and Ketan Kulkarni (Chief Growth Officer, Allcargo Logistics), highlights the sector’s projected growth, challenges, and opportunities.
The report estimates that the logistics sector will achieve a market value of ₹47.12 lakh crore by 2030, driven by technological advancements, policy reforms, and rising demand for efficient supply chain solutions.
Policy Initiatives Drive Growth
India’s improved ranking in the World Bank’s Logistics Performance Index (LPI)—climbing from 42nd place in 2018 to 38th in 2023—demonstrates progress in logistics infrastructure and operations. The report credits this achievement to key government initiatives such as the National Logistics Policy, PM Gati Shakti National Master Plan, and projects like Sagarmala and Bharatmala.
Additional efforts like Dedicated Freight Corridors, the e-Way Bill System, and the Logistics Data Bank (LDB) have further streamlined operations, reduced costs, and enhanced the efficiency of goods movement across the country.
Talent Shortages Remain a Challenge
Despite these advancements, workforce development poses a significant challenge. In 2023, 77% of employers in the transportation, logistics, and automotive sectors reported talent shortages. Although the percentage of employable talent in India increased to 51% in 2024 from 50% the previous year, the gap between workforce capabilities and industry demands persists.
With the sector expected to create 10 million jobs by 2027, addressing this talent gap is critical. The study emphasizes redesigning curricula to incorporate emerging technologies such as AI, big data, blockchain, and sustainability in supply chain management.
Technology as a Catalyst
The logistics sector is currently operating at a digitization level of 43%, leaving substantial room for growth. Technologies such as big data analytics, IoT, and blockchain are revolutionizing operations by enabling real-time monitoring and agile decision-making.
The report also highlights emerging innovations like autonomous vehicles, drones, augmented reality (AR), and virtual reality (VR), which are set to redefine warehousing and supply chain operations. According to McKinsey, increased digitization could boost annual EBIT growth by 3.2% and revenue growth by 2.3% for companies embracing these technologies.
Sustainability Takes Center Stage
Sustainability is another cornerstone of the sector’s transformation. The adoption of energy-efficient technologies, electric vehicles, and drones is helping the logistics industry reduce its carbon footprint. The report underscores the importance of decarbonization strategies to align with global sustainability goals.
Promoting Diversity and Workforce Development
The study highlights the untapped potential of women in the logistics workforce. Encouraging women to join the sector can bring valuable skills such as communication, collaboration, and critical thinking. Alongside this, it stresses the need for vocational training and enhanced faculty development to keep educators updated with industry trends.
Industry-academia collaborations, through internships, guest lectures, and research projects, are recommended to bridge the gap between theoretical knowledge and practical application.
A Bright Future Ahead
“With the right policies, technological innovation, and focus on workforce development, India’s logistics sector is poised to become a global leader,” said Professor Manoj K. Tiwari, Director of IIM Mumbai.
The sector’s transformation is expected to create millions of jobs, drive economic growth, and pave the way for an efficient and sustainable logistics ecosystem, cementing India’s position as a logistics powerhouse.
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