When one looks back the past years , there are good times
and bad times both. We still cannot forget that India had reached GDP growth
rate of nine per cent few years back which gives certainly a confidence to Indians that nine per cent growth rate and beyond is an achievable target. Unfortunately this story
of growth was spoilt by systemic corruption and too much subsidy distribution
during UPA II regime. Success story of
allowing FDI in Automobile sector and Telecommunication and partially in other
areas coupled with liberalization during the last decade brought foreign competition
in India and consumers in the country had a taste of quality products. This
rightly raised the demand for quality products. During this churning period many domestic
companies perished because they could
not face the foreign challenge and unfortunately Government at that time too did not do much to encourage manufacturers
from supply side. Manufacturing remained mere fifteen per cent of GDP. The last
year was really tough for the country and Indian industry. GDP growth started dwindling below five per
cent and current account deficit started moving up with dollar exchange rate to
Indian rupee touching even to seventy making things really difficult.
For looking ahead with a positive outlook and hope, last six months of stable government of Modi have certainly given reason for the optimism and with rising Sensex , it is
evident that investors both foreign and Indian have welcomed the steps taken by
new regime and market sentiments are now high .
Still much more needs to be done. The country is lucky too as
Year 2015 is a year where fortunately inflation is at its lowest thanks to the
sharp decrease of oil prices globally and the GDP growth once again is on the
upward trend reaching now beyond 5.2 per cent. People expectations are now high in the year
ahead and growth model of Modi government have many takers in the new
environment of hope and optimism prevalent in the corporate sector and among all
the participants.
For the Logistics sector now there is lot to cheer about too.
New regime has focused its all-out efforts on manufacturing sector with launch of
‘Make in India’ program coupled with efforts to improve logistics
infrastructure of ports, roads and rail. This has opened new opportunities to
third party logistic players in the area of inbound logistics. Needless to say
that unless inbound logistics succeeds, the challenge of rendering cost
effective manufacturing shall remain a distant dream and we shall not be able
to meet the competition brought out by foreign products especially from our
neighboring country China bringing out products with value for money approach. The new reforms of land acquisition and labor
reforms by the government of India though brought through ordinance are efforts
in right direction for improving manufacturing in India.
Further Government is quite serious about implementing goods
and service tax which would be a boon for incorporating large and state of art
warehouses and logistics industry as a whole.
E-Commerce is really booming with players like Flipkart, Amazon.com,
Myntra , Snapdeal and many more new kids on the horizon. This is really good
news for third party logistics players. State of art warehouses and transportation
facilities with speed are a key for success of E-Commerce. The 3PL players have
really now lot to celebrate for expansion in growth opportunities with this new
development and the good news is that they are rising to the challenge.
Year 2015 is a year of optimism, faith and growth as country
in this year is poised to become 2 trillion dollar economy.
Written by Prof. Akhil Chandra
Consultant ; Logistics and supply chain management
