EICI and Deloitte pegs Indian express industry’s CAGR at 17%

Express Industry Council of India released a Deloitte – led independent report titled ‘Indian Express Industry-2018: A multi-modal play in building the ecosystem’. The report forecasts the growth of the express logistics industry at 17 per cent CAGR; estimated to reach Rs 48,000 crore by 2023. Mentioning express industry as a key facilitator of the Indian economy, RS Subramanian, Country Manager, DHL Express India, says, “Every new age business, say e-commerce, whether it is B2C, B2B, within the country or cross-border trade is built on the back of express delivery. Supply chains are getting faster, shorter and tighter.”
The report highlighted that with the rise of new age business models and SMEs, and economy on the path of revival, there has been a considerable focus on improving India’s logistics performance. It also indicated that the industry grew at 15 per cent CAGR over the past five years and is estimated to be worth Rs 22,000 crore in FY17.
Vijay Kumar, Chief Operating Officer, EICI, said, “The express logistics landscape is undergoing a huge transformation due to the need for time bound delivery services to complement the growth of trade. As a key enabler of trade, the industry will also support and benefit from the e-retail boom in India. We also anticipate the express industry to provide a significant boost to India’s employment base to increase to Rs 26 lakhs. Regulatory and policy changes, and infrastructure enhancements will also give a much-needed fillip to the industry, which will positively impact the growth of other sectors.”