New Delhi: The warehousing and logistics sector is an essential part of e-commerce and retail businesses across India, highlights FICCI-Anarock report ‘Industrial and Logistics – Rapidly Gaining Momentum, Providing Enormous Opportunities.’ As per the FICCI-Anarock report, the market size of retail in India is estimated to grow to more than USD 1. 8 trillion by 2030 from USD 705 billion in 2020.

On the other hand, the e-commerce market in India is likely to reach USD 120 billion by 2026 from USD 38 billion in 2021. This exponential rise in retail and e-commerce businesses in India is likely to fuel the growth of the warehousing and logistics sector in India. Additionally, Covid-19 has accelerated the growth of e-commerce across India. Online shopping has increased significantly in Tier-II and Tier-III cities as well due to the easy availability of the internet on cheaper tariffs and restrictions on physical movement during the time of the pandemic.

The government has introduced a slew of measures such as the Gati Shakti Program, GST, National Manufacturing Policy, self-reliant campaign, land reforms, and tax reforms to provide necessary infrastructure and policy support to boost the manufacturing sector across the country. Additionally, Covid-19 led lockdowns across the globe highlighted the need for China plus one strategy for manufacturing as the supply chain for various companies was disrupted at the time of forced lockdowns in China.

Robust infrastructure and a liberal policy environment may entice these companies to set up their bases in India which may drive the next wave of industrialization in India. The warehousing and logistics sector is as important as manufacturing. Reasonably priced storage and transportation is the success mantra for many businesses. Considering the sector’s importance, the government has timely introduced various reforms such as GST, warehousing policy, and infrastructure status to the logistics sector to provide impetus to the sector. /BI/