How Bright is the Future of Supply Chain and Logistics in 2021 in India
How Bright is the Future of Supply Chain and Logistics in 2021 in India

Do you know that India currently is the prime destination for logistic service providers globally? It is being estimated that there can almost be a 9-10 percent growth in the next few years. The retail boom that our country is experiencing right now is huge. All thanks to the increased buying capacity of the middle-and upper-class segments of consumers. 

But, still what is stopping us to be the next biggest supply chain and logistics provider in the world? It is our poor and under-developed infrastructure. We are still not that advanced for introducing innovative and path-breaking technology. But things are changing right now. The logistics and supply chain market in India is expected to touch $307 billion by the end of 2021. 

Here are the eleven reasons the future of Supply Chain and Logistics in 2021 of India to be bright: 

Improved Logistics 

India is slowly on the path to achieving its dream of becoming an economic and logistical powerhouse with more and more investment in infrastructure and operational efficiency. Tech-driven integrated logistics are currently becoming an integrated part of the country. The warehouses in the country are currently equipped with many automated sorts and handlers and IoT devices. This helps in saving time in in-house logistic operations. 

Export Prospects are Growing

Indian markets are currently gaining exposure to premium brands and industries in unconventional niches. This is leading to the boosting up of both foreign exports and domestic consumption. Production facilities are much better off now than they were before. The manufacturing standards have also gone up. The government has brought up so many new policies like ‘Zero Defects, Zero Effect’ so that our country ranks up higher in the global market. 

Logistics Infrastructure has been Upgraded 

Consistent efforts are being put into pushing the Indian logistics paradigm towards a better tomorrow. The current logistics centers and warehouses are much better and enhanced. Also, nowadays they are located more around prime ports. The spaces and logistic parts are tailor-made which is proving to be helpful. Data shows that 9 eminent ports of the country have handled an increase in traffic by 3.11 percent between the period of April 2018 to January 2019 compared to the period between 2017 and 2018. Thus, all these major ports are portraying as an affirmative growth indicators and the value is only supposed to grow even more in 2021.

Marketing Strategies are Leaping

Do you know what has boosted the bilateral trade prospects of the country the best? The brilliant marketing strategies and extensive cultural research. In global business forums, PM Modi inspires the international business tycoons to invest in our country. This helps in optimizing whatever technological talent our country possesses. This is leading to the massive growth in the staggering FDI inflows. The exponential growth in the global market of audiobooks (according to a popular study of 10audioz) and the logistics supply chain market in India is growing at the same pace since the last three years. The digits went up to $405.64 billion by March 2020 which will shoot up even more by 2021.

Optimizing Asset Utilization through Cloud Computing

To improve operational efficiency, optimizing asset utilization is crucial. The logistics of the country has to aim towards being leaner and this is only achievable through cloud computing. Service providers can collaborate by sharing their fleets and networks through cloud computing. When they share information on cloud-based platforms in real-time, it becomes easier for service providers to coordinate and collaborate in the picking up and delivery of freight. This reduces the idle time of their fleet. It helps in making the delivery ecosystem more efficient. 

Enabling Easy Storage and Access to Data Through Cloud Computing 

Cloud technology is enabling the easy storage of enormous amounts of data. There is no need for even physical servers or hard drives. Logistics service providers can easily access whatever information they require in almost no time. Thus, the service providers gain the flexibility to show their control over crucial processes that require 24*7 monitoring. 

Big Data Analytics is Driving the Future Strategy of Logistics: 

Achieving operational efficiencies in the country's logistic framework and identifying improvement opportunities is becoming easier because of Big Data Analytics. Analytics can be implemented on the entire logistics value chain. For instance, complex statistical analytics can be managed and implemented using the GE's analytics platform, integrated infrastructure, Cisco's Unified Computing System (UCS) or Predix .Big Data can also help in identifying key insights and trends in data mining and retrieval processes. This analytics can be used for the development of algorithms and estimating the remaining useful life of assets. It can also be used to identify areas of operational inefficiencies and eliminate redundant costs by driving future strategies.  

New-Age Technologies 

The FDI inflows are only going up which is pushing the logistics sector to invest even more in the new-age technologies. Path-breaking and highly innovative technologies like machine learning, data analytics, deep learning which much ahead of their time are right now being implemented. Do you know what is helping in expanding the growth process of the logistics and supply chain even more? All these massive initiatives like ‘Make in India’ and ‘Digital India’ are hugely responsible. The IDG's 2020 State of Digital Business Transformation Report shows that 93 percent of the firms are right now considering executing these groundbreaking technologies to renovate the logistics and supply chain units. Their international counterparts are also doing the same. The logistic landscape will undergo huge transformation even in the future. The advanced tech optimization is bound to speed up the profits. 

Improvement in the Trade Policies 

Bilateral trade and international business is being amplified and promoted because of the improved data policies. Trade policies such as the Merchandise Exports from India Scheme (MEIS) and the Service Exports from India Scheme (SEIS) are making the business environment much more inductive. It is also leading to constructive improvement in the supply and logistics chain management. The Commerce and Industry Ministry revealed that the robust logistics and supply chain sector has catalyzed the exports by a whopping $439 billion this year which shows 2021 is going to be even brighter. The Indian Government has also incentivized the fall in tariff rates and taxes by various nations. This is happening because of the consistent efforts of the Government for improved bilateral trade. 

Significant Reduction in Manual Intervention 

Artificial intelligence is leading to automation of business processes. This is leading to a reduction in manual interventions for freight handling. The processes are getting faster and the quality is getting higher which is bringing down the costs. It is also helping in eliminating hidden costs and is bringing down the overall high logistics cost of India. This is also ensuring speedy inspection by regulatory agencies and minimum handling damage. Logistics carriers are being equipped with real-time information on key location statistics. This is all due to the RFID and GPS which is making the entire logistics systems much more responsive. 

Significant Improvement in the Blockchain Technology

One point of the logistics chain to another can be seamlessly brought together by aligning the processes with the help of blockchain technology. This is especially helpful in eliminating the duplicities of the documentation processes. Also, because of the manual entry of data, there is a potential risk of errors in the system through various points in the value chain. But blockchain technology is helping in controlling this. Also, achieving an integrated end-to-end logistics system is becoming much more possible than before. The interaction between port customers, drivers, carriers, terminals, freight forwarders, haulers, shippers, and others is getting much paced up because of this technology. The multiple interactions between these parties are getting reduced which is preventing data manipulation.    


The digital customer base is expanding but the ill-planned infrastructural facilities are not being able to complement it. Our country is getting trapped between the growing demand for logistics services and the fragmented market for logistics services. But as of 2021, India is taking gigantic steps and experiments for adopting digital technologies in the country.

But there is more potential left unexplored for the creation of higher value in the Indian economy. If the logistics and supply chain management sector has to benefit from it, the stakeholders have to put in more collaborative and concentrated efforts. Everyone has to put in the work including infrastructure providers, operators, technology companies, and of course the logistics service providers. 

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