CII to seek industry status for logistics

The Confederation of Indian Industry (CII) plans to seek industry status for the logistics industry considering robust growth potential and flow of investments.

The industry body also plans to make some recommendations based on the deleberations and discussions at its forthcoming summit Logistics 2007, a conference-cum-exhibition to be held in Chennai.

H R Srinivasan, chairman, CII Logistics 2007, and vision holder, Take Solutions, said: "The Indian logistics industry and third party logistics will witness explosive growth in the next five years on the back of boom in the manufacturing, growing domestic consumption, organised retailing and increasing external merchandise trade."

"Foreign direct investment infows in sectors such as automotive, capital goods, electronics, pharma and telecom will lead to increased market opportunities for logistics service providers in India," he added.

The estimated size of the logistics industry in 2006 was $73 billion, 13% of GDP. The share of the organised logistics outsourcing industry stood at 6%, which is projected to witness a 25% CAGR (componded annual growth rate) over the 2006-11 period, and reach $15 billion by 2011, when the contribution of the organised logistics outsoucing industry to the industry at large increases to 14%.

CII and KPMG will bring out a skills gap study with a view to sensitise the industry and the government on the importance of creating a talent pool for the logistics industry. "This is the first time such a skills assessment study is being done for the sector," Srinivasan added.