India can realise its potential as a global logistics hub by proactively developing warehousing solutions based on innovation, sustainability, and future demand, emphasises Sandeep Chanda.India aims to become a developed nation (Viksit Bharat) by 2047, where the lo...
India can realise its potential as a global logistics hub by proactively developing warehousing solutions based on innovation, sustainability, and future demand, emphasises Sandeep Chanda.India aims to become a developed nation (Viksit Bharat) by 2047, where the logistics and warehousing sectors work in tandem. The focus on manufacturing-led growth is also going hand in hand with the governmental initiatives through the National Logistics Policy (NLP), 2022, and the upgrade of Dedicated Freight Corridors and PM Gati Shakti. During this growth phase, the world鈥檚 fastest-growing major economy must redefine its logistics and warehousing framework to achieve the Viksit Bharat vision.The rise of e-commerce and the recent boom in quick commerce, along with the central government鈥檚 push to reduce logistics costs by 10 per cent, is leading to a paradigm shift. India鈥檚 warehousing and logistics sector is moving from traditional storage facilities to sophisticated, technology-enabled hubs to align with global standards.Further, focused initiatives propose to cut logistics costs by half to be near global benchmarks by 2030 by reducing the cost of logistics from 14-18 per cent of GDP to the international best of 8 per cent. By implementing measures that increase efficiency and integrate multi-modal transport systems the NLP aims to bring India to the forefront of the logistics game globally. At the same time, initiatives like PM Gati Shakti focus on seamless infrastructure integration of different modes of transport to accelerate connectivity and remove bottlenecks.Current dynamicsSupported by initiatives such as the Productivity Linked Incentive (PLI) schemes, manufacturing-led growth resulted in a growing demand for modern warehousing. New industrial hubs have been coming up across the country with the progressive expansion of 鈥楳ake in India鈥�. These industrial hubs need supply chains and warehousing solutions that make sense.In this regard, multi-modal logistics parks (MMLPs) are poised to become the backbone of India's logistics infrastructure. These parks will streamline the overall process of cargo handling and significantly reduce turnaround times. By integrating warehouses, packaging, inventory management, and connectivity to ports, airports, and rail networks, MMLPs promise a seamless and efficient logistics experience, enhancing the country鈥檚 position in global trade.The strategic development of warehousing is central to modern logistics, providing solutions to many long-standing challenges. By standardising warehousing facilities, India can improve global compatibility and competitiveness, attracting more international businesses. Efficient warehousing capacity ensures that goods are stored and managed optimally, reducing costs and increasing the speed of distribution across the country.Meanwhile, technology integration is transforming supply chain operations, with automation and robotics revolutionising inventory management and material handling. The use of IoT, AI, and blockchain provides logistics providers with real-time data, enabling predictive analytics, resource optimisation, and better decision-making. These technologies are key to creating a more agile and responsive logistics network that can adapt to changing demands.Sustainability in warehousing is no longer an option but a necessity. Green logistics, characterised by energy-efficient buildings, solar-powered warehouses, and a commitment to waste reduction through circular economy principles, is becoming the norm. This shift towards environmentally friendly practices will help India achieve its goals of net zero emissions and create an accountable supply chain that prioritises ecological responsibility.Evolving landscapeTo ensure the effective evolution of the warehousing industry in India, logistics providers must embrace digitalisation and data-driven insights. This integration will refine supply chain operations by facilitating better forecasting, managing inventory more efficiently, and enabling dynamic route planning. Such advancements promise significant cost savings and an improved quality of service, addressing the persistent issues of high logistics costs and fragmented infrastructure.In tandem with technological advancements, the workforce must also evolve to maintain excellence. Human capital should be correspondingly developed through training in areas such as automation tools and data-driven systems. This will ensure the workforce is adequately equipped to handle the sophisticated technology being introduced into work processes, enhancing overall productivity and efficiency.The importance of supply chain resilience has been underscored by the disruptions caused by the COVID-19 pandemic. To mitigate such challenges in the future, warehousing solutions must be adaptable to ensure that operations remain unaffected by market volatility. Building resilient supply chains will enable businesses to navigate unpredicted disruptions smoothly and maintain continuity in operations.Thus, India鈥檚 warehousing sector holds immense potential for growth through automation, digitalisation, and green practices. However, it is crucial to address the challenges of high logistics costs, fragmented infrastructure, and the slow adoption of advanced technologies to realise this potential fully.Getting future-readyTo fully harness the potential of the warehousing sector, India must adopt an integrated approach that emphasises innovation, sustainability and inclusivity. Infrastructure modernisation, incorporating the latest technology, is essential for operational efficiency and cost reduction. Advances such as warehouse automation, autonomous vehicles, and smart packaging are revolutionising logistics.Furthermore, the future lies in green logistics, with energy-efficient practices that reduce carbon footprint and set an international example for sustainable growth. Public-private partnerships play a crucial role in accelerating infrastructure development, fostering innovation, and driving investment. Collaboration between industry stakeholders and policymakers is necessary to overcome systemic challenges.In any event, warehousing and logistics stand at the crux of Indian economic ambitions. India can achieve this with a confluence of innovation, sustainability, and growth; within this vision, India could indeed realise its maximum potential as the global logistics hub. This would pave the way to Viksit Bharat, with a robust, resilient supply chain ready to embark on an exciting future where growth is not only stimulated domestically but also propels the nation upward on the international stage.The sector that would form the backbone of India's journey to becoming a developed country would be logistics and warehousing. The large focus areas include innovation, integration, and sustainability. Such significant milestones would not only enable India to meet its economic goals but also provide it with an international benchmark for excellence in the logistics landscape.About the author:Sandeep Chanda, Managing Director, Panattoni IndiaIndia Logistics Opportunity鈥� Logistics and warehousing work in tandem to reduce delivery times 鈥� This paradigm shift is driven by rising e-commerce and a boom in quick commerce鈥� India is transitioning from traditional storage facilities to sophisticated, technology-enabled hubs 鈥� The country aims to reduce logistics costs to 8% of its GDP by 2030, to align with global standards鈥� Initiatives like PM Gati Shakti seek to integrate different transport modes to accelerate connectivitySource: PanattoniGrowth Drivers鈥� Expansion of manufacturing is boosting warehousing infrastructure 鈥� Multi-modal logistics parks promise a seamless and efficient supply chain experience 鈥� Standardising warehousing facilities enhances global compatibility and competitiveness 鈥� The use of IoT, AI, and blockchain enables a more agile and responsive logistics network 鈥� Adopting sustainable practices reduces CO2 emissions and builds eco-friendly supply chainsSource: PanattoniWarehousing for Tomorrow鈥� Train the workforce in automation tools and data-driven systems to improve productivity and efficiency鈥� Warehousing operations must be adaptable to handle market volatility or force majeure events鈥� An integrated approach emphasizing innovation, sustainability, and inclusivity is needed鈥� Enhance collaboration between industry stakeholders and policymakers to overcome systemic challenges鈥� Through innovation, sustainability, and growth, India can become a leading global logistics hubSource: Panattoni
