Communication Feature

Budget 2019: Logistics Sector

March 2019

KARTIK GANDHI, Director, Gandhi Automations, expects the logistics sector to remain an important recipient of the government’s upcoming budgetary proposals, especially on infrastructure development.

The Indian logistics sector is presently estimated to be worth around $160 billion. It is poised to grow phenomenally over the next two years and reach a size of $215 billion by 2020. The road logistics sector plays an important role in facilitating economic activity and trade in any country and its importance in developing countries like India can never be underestimated. 

Knowing the sector

Over the past few years, the freight transportation sector in India has been the key beneficiary of the government’s reform cycle. From the implementation of GST and E-Way Bills to awarding infrastructure status, the sector has witnessed a series of developments, which are gradually driving efficiency in the entire logistics ecosystem.

With impetus spendings on improving infrastructure and facilitating trade, Gandhi Automations expects that the logistics sector will remain an important recipient of the government’s upcoming budgetary proposals, especially on infrastructure development.

The infrastructure for warehousing and logistics is poor. However, with the advent of GST and implementation of the GST regime, things are looking upbeat. Companies have started investing hugely in warehouse space and logistics. This has promising views on the upcoming technology and advancements in this sector.

There is a clear need to add manufacturing capacities in the manufacturing automation and logistic warehousing sector. 

The industry is moving towards increasingly sophisticated entrance automation solutions like high-speed doors, automated rolling shutters, loading bay solutions, hangar and garage doors, sectional overhead doors, etc, which are driven by the demand from key user segments, such as automobiles, consumer durables, aerospace, construction, pharmaceutical, food, industrialisation, etc. To derive long-term benefits, entrance automation manufacturers should develop capabilities to cater to this demand and promote greater investments in this sector.

Present challenges

The challenges here are sustainability and access. The opportunities to the Indian industry with automation are to maintain an efficient production cycle, safe inventory, cutting-edge technology, speed of movement, functionality and safety, which are the 

must-haves for this line of Gandhi Automations products. If we add the high quality of personalisation and design, they become unique elements that are necessary for daily logistics operations, and for the visibility of customer identity.

Gandhi Automations’ products are in conformance with highest standards, and can be installed either on new fixed or retractable warehouses, or can be integrated into an already existing one.