India Ratings gives logistics stable outlook in FY22, sees demand growing

Agency estimates 8 per cent year-on-year improvement in volumes for Indian ports in FY22.

India’s logistics sector looks stable in financial year 2021-22 as a recovering economy builds demand, said India Ratings and Research (Ind-Ra) on Monday, citing the commissioning of a dedicated freight corridor.

Adani Ports and Special Economic Zone was among ports that reported resilient volumes in FY21. Ind-Ra estimates an 8 per cent year-on-year improvement in volumes for Indian ports in FY22, compared to an estimated 4 per cent year-on-year decline in FY21.

The 8 per cent year-on-year rise will be led by private ports, which in five years have displayed a median multiplier (vs real GDP growth rate) of 1.4x, thus outperforming