Retail biz to reach $1.8 trn by 2030
And that of e-commerce mkt to reach $120 bn by 2026, says FICCI-Anarock report
image for illustrative purpose
Hyderabad The warehousing and logistics sector is an essential part of e-commerce and retail businesses across India, where the market size of retail in India is estimated to grow to more than $1.8 trillion by 2030 from $705 billion in 2020. On the other hand, the e-commerce market in India is likely to reach $120 billion by 2026 from $38 billion in 2021, reveals FICCI-Anarock report.
This exponential rise in retail and e-commerce businesses is likely to fuel the growth of the warehousing and logistics sector in India. Additionally, Covid-19 has accelerated the growth of e-commerce across India, highlights FICCI-Anarock report 'Industrial & Logistics – Rapidly Gaining Momentum, Providing Enormous Opportunities', released during the webinar '1st Edition of FICCI Commercial & Industrial Real Estate Conclave'.
Online shopping has increased significantly in tier-II and tier-III cities as well due to the easy availability of the internet on cheaper tariffs and restrictions on physical movement during the time of the pandemic. This trend has provided an impetus to the warehousing and logistics sector beyond tier-I cities. The constant push and ambitions for infrastructure development and policy support provided by the government may ride the next wave of growth for the industrial, warehousing, and logistics sectors in India.
The government has introduced a slew of measures such as the Gati Shakti Program, GST, National Manufacturing Policy, Self-Reliant Campaign, Land Reforms, and Tax Reforms to provide necessary infrastructure and policy support to boost the manufacturing sector across the country. Robust infrastructure and a liberal policy environment may entice these companies to set up their bases in India which may drive the next wave of industrialisation in India. The warehousing and logistics sector is as important as manufacturing.
Reasonably priced storage and transportation is the success mantra for many businesses. Considering the sector's importance, the government has introduced various reforms such as GST, warehousing policy, and infrastructure status to the logistics sector to provide impetus to the sector. National Logistics Policy is in the draft stage and expected to change the face of the logistics sector in India.
