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The Indian transportation and logistics industry is a constellation of many
huge sub-industries. Logistics infrastructure is the backbone of the nation’s
production. It is responsible for expanding trade and linking together resources
and markets into an integrated economy. India’s 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, India’s 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.
1.1 Indian Logistics Sector Scenario
2. Industry Segmentation
2.3 Air Cargo
4. Government Initiatives