India's logistics industry to be worth $215 bn by 2020-21: CARE Ratings

It is estimated that slashing logistics costs by 10 per cent could widen exports by five to eight per cent

The country's logistics industry is projected to be worth $215 billion by 2020-21, recording a 10 per cent compounded annual growth rate (CAGR) over its approximate size of $160 billion in 2016-17.  

The industry's growth will be fuelled by the strides in manufacturing, retail, fast-moving consumer goods and e-commerce sectors. Development of logistics related infrastructure, like dedicated freight corridors, logistics parks, free trade warehousing zones and container freight stations, are expected to improve efficiency, a report by CARE Ratings observed. 

At present, the logistics sector is dominated by transportation, which has over 85 per cent share in value terms.