Sectoral Capsule - Indian Transportation Logistics Sector - The Road Ahead

Sep, 2013   |   13  Pages   |   Gyan Research and Analytics   |   Format : PDF

The Indian transportation and logistics industry is a constellation of many huge sub-industries. Logistics infrastructure is the backbone of the nations production. It is responsible for expanding trade and linking together resources and markets into an integrated economy. Indias growth has, therefore, put the transport infrastructure under duress. This gap provides an opportunity for players, both domestic and international.

Since development of infrastructure continues to remain vital for economic growth, the total infrastructure expenditure during the Twelfth Plan (2012-17) is expected to double to USD 1,025 billion from USD 514 billion in the earlier plan. At least 50 percent of this will come from the private sector, while public sector investment will increase to about USD 512 billion from USD 328 billion in the Eleventh Plan.

Further, Indias regulatory environment for the sector has significantly eased since economic liberation. Foreign investors are permitted 100 percent FDI through direct route in most of the sub-segments. However, the government will also have to reform the regulatory and administrative set-up if its plans are to be executed. For instance, despite various announcements by the government, the road sector has been suffering from delays in the awarding and execution of projects for the last 2-3 years.

With the government trying to revamp the logistics sector, it offers a plethora of opportunities for both domestic and international players.

1. Overview
1.1 Indian Logistics Sector Scenario

2. Industry Segmentation
2.1 Roads
2.2 Railways
2.3 Air Cargo
2.4 Ports

3. Opportunities

4. Government Initiatives

5. Outlook

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