Logistics industry will be on a normal growth trajectory by the end of FY21: Vikash Khatri

Vikash Khatri, Founder, Aviral Consulting is of the opinion that by the end of FY 21 the logistics industry will be on a normal growth trajectory with a lag of one year. Explaining how, he continues, “We are approaching towards mid of FY 21 and the situation is still not normal. Although most of the economic activities have started inspite of the growth in COVID-19 cases but a normal situation is still far-off. Our estimate about transportation sector is aligned with ICRA’s estimate of contraction by 18-20 per cent. If we break down volume trends in month over month, we find that April was a completely washed out month, while transportation activities in May were about 45-50 per cent normal. Since June there is continuous improvement in month over month volumes and it is currently hovering around 80 per cent of normal volume. In last five months, decline in EXIM has also directly impacted hinterland transportation volumes. Once we extrapolate these volumes for FY 2021 with continued improvement in subsequent months, we see overall contraction in road transportation to the tune of 20 per cent.”