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##### LOGISTICS SECTOR : AN OVERVIEW

India being one of the fastest growing economies in the world has great potential for growth in every sector. Logistics sector is the backbone of development and a strong and growing logistics sector indicates a healthy trend of a growing economy. The Logistics sector in India has always been about resilience, adapting to new technologies and agility. With better inforastrtcture, Indian industry was able to plan its business operations in a more efficient manner, moving India closer towards becoming a manufacturing hub for the world.

According to a recent report by McKinsey Global Insitute (MGI), India's logistics sector would expand at a Compound Annual Growth Rate (CAGR) of more than 10 percent, from $200 billion in early 2020 to at least $320 billion in 2025. This subsequently changed in 2020 due to the pandemic and businesses came up with innovative solutions to plan for the future.

In recent years, the Indian government has had a renewed focus on investing into logistics infrastructure in the country, while at the same time encouraging investments from the private sector as well. This has led to much better rail connectivity and road networks and increase in the number of ports, inland container depots and warehousing services throughout the country.

The government has recently introduced PM Gati Shakti— National Master Plan for Multi Modal connectivity, which is a transformative approach for economic growth and sustainable development in the logistics sector to achieve India's aim of reaching a $ 5 Trillion economy. Along with the Bharatmala Pariyojana project, the government plans to develop 35 Multi- Modal Logistics Parks to strengthen logistics and build transportation hubs in the country for seamless connectivity via road, rail, and water. In the coming years, these Parks will create over two lakh job opportunities and reduce logistics cost from 13-14% of India's GDP to approx. 8-10% as observed by developed countries.