Leveraging Warehousing Technology for India’s Deeper Integration into Global Supply Chains

Co-authored by: Dr. Jitamitra Desai, Chairperson, SCMC, IIMB; Dr. Aditya Gupta, COO, SCMC, IIMB; James Christopher, President, TMX Asia; Poul V. Jensen, Managing Director, European Business and Technology Centre (EBTC).

In recent times, the Indian government has made significant efforts to enhance the logistics and warehousing sectors. In particular, the flagship programmes of the Indian government, such as, ‘Make in India’ and the ‘Atmanirbhar Bharat’ scheme, seek to catalyse domestic manufacturing in India, not only for the domestic market, but to facilitate exports, as well.

However, challenges remain. According to estimates, logistics costs account for as much as 14% of GDP in India, well above the 8-10% seen in advanced economies. These higher costs undoubtedly have an impact on the ability of India to become a regional and global logistics hub. This challenge is compounded by issues related to the lack of standardized guidelines in line with international frameworks for warehousing space, transit transport and automation in the sector, on the one hand, and the lack of a National Logistics Policy, on the other hand.

This White Paper seeks to provide an overview of the present state of warehousing in India, the factors contributing to current and expected changes, the level of automation and technological adoption in this space in India, profiles of key players, as well as an overview of potential technologies and solutions that could be adapted to and adopted by the sector in India.

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