1. TV, Shreeharsha; Singh, Satyam Pratap; Kundan, Preetam;R, Nithin; Ahmed, GhufranAIM, New Delhi29th Aug, 2014

2. Introduction Whats Changing the Status Quo? Sector Specificities Recommendations Conclusion 3. Indias nominal GDP could grow to USD 3.6 trillion by2020 at an annual growth rate of 9%. Indias crude steel production is expected to increaseby a factor of 4 by 2030, The demand for cement in the country is expected todouble by 2030. Agricultural output to grow by 42.5% by 2020. The Indian textiles industry is expected to triple toUS$220 billion by 2020. The share of organized retail is expected to increase to24 percent by 2020. 4. It is anticipated that more than60 percent of Indias urbanpopulation will be concentratedin 2025 urban clusters by 2030. logistics support infrastructurein Indias metros is inadequatefor serving existing trade needs. The growth of urban centers insize and number wouldnecessitate the need for aproactive approach in logisticsplanning to sustain growth.Mega Cities: 13Industrial Clusters: 27 5. Growth in the domesticmanufacturing and retail segmentshas given impetus to the demandfor efficient warehouse-managementservices. Existing small warehouses need tobe replaced by large, modernwarehouses that incorporate globalstandards. Existing infrastructure needs to beupgraded to increase throughput. 6. Logistic costs in India 7. Air Cargo is Vital in Linking InternationalMarkets. The total volume of air cargo trafficcurrently constitutes about 1 percent of totaltrade and accounts percent of Total TradeValue. The Open Sky policy adopted in the early1990s, allowed carriers to operate bothscheduled and non-scheduled cargo servicesbetween all airports in India. Between 2006 and 2012, air cargo traffichandled at Indian airports increased at aCAGR of 11.5 % Over the next decade, total air cargo trafficis expected to grow at a CAGR of 10.3% 8. Indias Ports facilitate 90% by volume and 70% byvalue of Indias external trade via maritime traffic. Indias coastline spans across 7,500 Km with 13 majorports and about 176 non-major ports. The Indian port market has witnessed significantgrowth over the last decade, growing at 8.5% The Maritime Agenda 20102020 is aimed at Growth of Non-Major Ports, Increased Containerization, and Improvisation of East Coast ports. 9. The GoI plans to invest INR2,870 billion in generatingtotal port capacity of 3,200 MMT. The public-private partnership is expected to play animportant role in the development of non-major ports. The EXIM container market in India has grown at aCAGR of 12 percent in the past five years. The East coast contribution in Indias total trade isexpected to increase from 23% in 2010 to 34% in 2014. 10. The demand for warehousing in India was estimatedat approximately Rs. 245270 billion in 201112. The share of the industrial segment, is expected toincrease from about 86 percent in 201011 to around90 percent in 201516. The highest growth is expected from engineeringgoods, and IT, electronics and telecommunicationssectors, estimated to grow at CAGRs of about 8.6 and8.2 percent. The share of modern warehousing is anticipated togrow to 30% by 2015. 11. Spanning 64,456 km with morethan 7,133 railway stations,Indias rail network is the largestin Asia. The Indian Railways operates19,000 trains daily, transporting2.65 MMT of freight everyday.Rail freight has grown at around 7 percent over thepast five years, and is expected touch the 1 billion tonmark in 2013.As compared to global standards, Indias track lengthper sq. km. is unfavorable at 44 km of track per 1,000 sq.km. 137 km and 417 km in US and Germany. 12. The project envisages the construction of two corridors,one each on the west and east routes, spanning a totallength of about 3,300 km. Freight via the DFC would increase from 140 MMT in 201617 to 182 MMT in 202122 at a CAGR of 5.4 percent. Container traffic on the Western DFC, is expected to growfrom 3.8 million TEUs in 201617 to 5.3 million TEUs in202122. In a No-DFC scenario freight would continue to movealong existing rail and road network resulting in gradualsaturation of the rail network over a period of time. 13. Indian Roadways account for 60 percent of totalfreight movement in the country. Over the next five-year period, road freight is expectedto grow at a CAGR of 9.6% Roads continue to lag behind world averages, withroad density at 2.83 km/1,000 people compared to theworld average of 6.7 Km/1000 people. Indias low average trucking speed of 3040 Kmph asagainst the global average of 6080 kmph. 14. The National Highways DevelopmentProgramme, aims to developing50,000 km of National Highways by2015 in seven phases with aninvestment of Rs 3,000Bn. Investments in the road sector islikely to double in the 12th Five yearplan. To encourage private players, theGovernment has announced severalincentives such as: 100 percent tax exemptions in anyconsecutive 10 years. Duty free imports of certain identifiedconstruction plants and equipment. FDI of up to 100% 15. Water as a mode of cargo movement contributes only 8% byvolume of the Indias cargo movement. Fuel consumption for every ton-kilometer of freight shipped isonly 15 percent of that by road and 54 percent of that by rail. From a cost perspective, shipping costs 21 percent of that by roadand 42 percent of that by rail. Coastal shipping and inland waterways transportation are thetwo significant modes of domestic shipping. 16. Growing at 7.2% over the past five years, IWT cargotraffic was estimated at 79 MMT in 201112. India is home to 14,500 km of navigable inlandwaterways, of which 5,200 km of major rivers and 485km of canals are conducive to the movement ofmechanized vessels. India has a vast coastline of 7,500 Km, and yet Indiascostal shipping potential remains significantlyunderutilized. Coastal shipping is a feasible option for movementbetween most ports on the west and east coasts . 17. India is at a crossroads of Changing Paradigms andGlobal Integration. New Trade requirements make it mandatory tostandardize and regularize the process and practices oflogistics in India. Freight Forwarding, Port Optimization, PPP, FDI,DFC, and IWT are some key avenues that should betaken into consideration for improvement of IndianLogistics. 18. Logistics is growing in India, so what? 55593 Jobs for SCM executives 56610 Jobs forMaterial management 8000 Jobs inWarehousing Just Jobs? No, You can start your own Business. What if Im not getting into Logistics?Dont get in, Invest in it. Buy Shares, Finance a Lorry etc What if I cant do any of the above? Become a Logistics Teacher in a B school. 19. The Report has brought out the key Game Changersin Logistics and their effect in the Indian context. There are emerging trends that the world is followingand India should do its best to keep up with thetrends. Each sector finds its own usecases, each should receivedue attention and considerate action. Times are changing, so should you.