Study: India’s 3PL activity to grow 55 percent in 3 years

Expenditure on third party logistics activities in India is forecast to rise from $58 million currently to $90 million by 2012, according to a study by the Associated Chambers of Commerce and Industry of India.

   The study, Building Logistics for Competitive Business, also projects that the size of India’s logistics sector will increase from $100 billion today to $125 billion by 2010, Exim News Service reported Wednesday.

   The study said India’s move toward a nationwide value-add tax system (and away from individual state taxes) would encourage business to view the country more holistically and thus turn to outside providers of logistics services. The trend of outsourcing logistics has been gradually occurring anyway, evidenced by the fact that 55 percent of companies in India outsource some aspect of their supply chain, versus 10 to 15 percent 10 years ago, the study said.

Source: American Shipper