The Indian express industry is estimated to see a rise in the compounded annual growth rate of 17% and reach Rs 48,000 crore by 2023, according to an independent study led by Deloitte.
The report titled ‘Indian Express Industry 2018: A multi-modal play in building the ecosystem’ forecasts this growth as being primarily driven by the growth of cross-border and domestic e-commerce in India, and significant demand from the small and medium B2B segment.
The report highlighted that with the rise of new age business models and SMEs, and economy on the path of revival, there has been a considerable focus on improving India’s logistics performance. It also indicated that the industry grew at 15% growth rate over the past five years and is estimated to be worth Rs 22,000 crore in FY17.
The express industry contributed Rs 3,000 crore in service tax and Rs 2,000 crore in customs duties besides direct taxes around employment creation In FY17, thereby contributing to the national exchequer, said the report.
The study concludes the online retailing to be a major growth driver for the industry with over 1.3 million shipments from this sector shipped daily. It contributed Rs 5,000 crore in FY17 to the Indian express industry.
Vijay Kumar, chief operating officer, Express Industry Council of India said, “The express logistics landscape is undergoing a huge transformation due to the need for time-bound delivery services to complement the growth of trade. As a key enabler of trade, the industry will also support and benefit from the e-retail boom in India. We also anticipate the express industry to provide a significant boost to India’s employment base to increase to 26 lakhs. Regulatory and policy changes and infrastructure enhancements will also give a much-needed fillip to the industry, which will positively impact the growth of other sectors.”