Key Growth Drivers of the Indian Logistics Industry

The logistics sector in India is one of the fastest developing industries, buoyed by a still growing economy, rapid development across all other industries, and increasing disposable incomes among a growing population. In this article, we enlist some of the key factors that are responsible for driving the growth of the Indian logistics industry.

Growth Drivers in Indian Logistics Industry

Key Growth Drivers from the Supply Perspective

  • Numerous ports: India has a large coastline and has focused on developing many ports for more shipping opportunities. The government has increased its investment in developing existing ports as well as commissioning new ports along the coastline for better trade prospects.


  • Road connectivity: India has the second largest network of roads, spanning the length and breadth of the country. Even though most of its roads are not up to international quality, the NHAI has invested in developing more expressways and highways to improve road transportation, which will enable more trucks to ply on these routes.


  • Rail connectivity: Most of the country depends on Indian railways to carry freight, and contributes 70% of the railways’ revenue. The government is looking to increase efficiency of freight transport by rail through creation of dedicated freight corridors on rail networks.


  • More airports: With each passing year, more and more towns are getting airports and better air connectivity. The government is also working on modernizing existing airports to handle more traffic.


Key Growth Drivers from the Demand Perspective

  • Industrial growth: Indian manufacturing industries are growing at a rapid pace due to two primary reasons:

1)      India is increasingly being seen as a viable destination for outsourcing manufacturing divisions.

2)      Growth in domestic demand for products. As industries continue to manufacture more products, their dependence on logistics for supplying raw materials and transporting finished goods continues to grow.


  • More trade: With every passing year, India is undertaking more trade – both imports and exports, with nations across the world. This requires considerable logistic support, giving a huge boost to the sector.


  • Rising population and rising disposable incomes: There is considerable growth in the number of consumers within the country. All over the country, people are moving up the economic chain, and as their incomes rise, they require more goods and services from different parts of the country.



Keeping these factors in mind the growth prospects for the Logistics and Relocation industry look very promising. With government introducing regulations to push the sector towards systematic growth, organized logistics companies in the country have a lot to look forward to.


RelocateXP’s Role In The Indian Logistics Sector’s Growth

RelocateXP is a one of a kind initiative through which we hope to bring greater transparency and more business for legitimate and genuine vendors in the Relocation sector. We have created a platform that inspires trust among customers thanks to our stringent entry norms and unbiased approach to doing business.

When customers hire a vendor through RelocateXP, they know that they are engaging with a certified and reliable company. For businesses in the relocations sector we therefore offer a unique opportunity to add to their brand value by associating with us and get a steady stream of business through our marketing efforts.

The market is growing, we recognize that and therefore work consistently towards developing new programs and business arrangements that can help legitimate business in the sector increase their revenues, while ensuring that the consumer’s interests are always protected.

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