The Centre’s focus on improving infrastructure, rapid formalisation and burgeoning rural demand has put the logistics sector in the spotlight in India. In fact, data from staffing TeamLease Services, a staffing company, shows that the sector is expected to create nearly 10 million jobs in the country by 2027. In this episode of the “State of the Economy” podcast, TE Raja Simhan talks to A Balasubramanian, Vice President and Business Head, TeamLease Services, to understand how the future of the logistics sector in India will shape up.
In the podcast, Balasubramanian sheds light on the logistics job market. He said that the cost of logistics in India is about 14 per cent of the GDP, while the global average is around 8 per cent. However, the industry is not known for its high wages. He noted the high cost and low efficiency of the industry must be addressed. Skilling workers is another issue that must be addressed as a significant portion of the workforce in logistics is categorized as unskilled, he noted. Basic skills, like digital literacy and English comprehension, are increasingly important in the sector he noted.
He also said that technology adoption, including that of Artificial Intelligence and Machine Learning, is transforming the sector, creating new jobs in areas like data analytics, software development and automation.
In the podcast, Raja Simhan and Balasubramanian also discussed the formalisation the sector is currently undergoing. They talk about the growing trend of organized players entering the industry. This has led to increased investments in technology, improving productivity and reducing costs.
Balasubramanian observed that the demand for workforce is high at the entry-level, encompassing roles such as warehouse operations personnel, packers, movers, loaders, and last-mile delivery personnel. This accounts for the majority of the workforce in the logistics space, he noted. He also pointed out that the demand for labour increases seasonally and there is a higher demand for workers around the festive seasons.
Listen in to know more about how government initiatives like the National Logistics Policy, PM Gati Shakti scheme, and Production Linked Incentive Policy are key drivers to enhance efficiency, productivity, and competitiveness in the logistics sector.
(Host: TE Rajasimhan; Producers: V Nivedita, Siddharth MC, Nabodita Ganguly)
About the State of the Economy podcast
India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups.