Even though the logistics sector in India projected moderate growth during H2 FY2019 and may remain weak during Q1 FY2020, it is expected to pick up and move upwards over the medium term, states ICRA. According to Sruthi Thomas, Senior Analyst, ICRA Ratings, “Our analysis of financial performance of key-listed logistics companies in India indicate that there was a moderation in the growth momentum during the last quarter of FY2019, and the same is likely to continue into Q1 FY2020 as well. Although ICRA expects the growth to remain weak during Q1 FY2020, given the sequential softening of freight rates and the subdued economic activity, it is expected to revive subsequently. We maintain a stable outlook for the Indian logistics industry, expecting it to grow at 8-10 per cent over the medium term.”
The slowdown in demand has been especially pronounced in certain segments like automobiles, e-commerce and air express cargo.