The logistics industry in India is likely to grow at a rate of 9-10 per cent over the medium-term on the back of economic recovery, according to rating agency ICRA. The trend towards outsourcing of non-core activities like logistics, warehousing, and associated activities to integrated players is likely to drive the share of the organised segment.

In its note, ICRA said that the implementation of the Goods and Services Tax (GST) will also support organised players as it would lead to the consolidation of the warehousing network, higher degree of tax compliance, and the creation of a level playing field between express and traditional transport services providers by virtue of access to input tax credit.
There is also a shift in approach visible in the logistics players, from pure transportation business to becoming end-to-end service providers, facilitating the growth of third-party logistics and supply chain management industries in India.