INDIA SCENARIO

• The Indian logistics and warehousing industry is at the heart of the nation’s economic expansion. As businesses continue to adopt advanced technologies and automation, the sector is poised to become more efficient, productive, and sustainable. Government policies and infrastructure improvements further enhance its investment appeal, making it a dynamic and globally competitive industry with immense potential for future growth.
• The logistics and warehousing sector in India has undergone significant transformation, particularly in the post-pandemic era, driven by a surge in online shopping and shifts in consumer behaviour. This shift has prompted businesses to adopt new, flexible formats that prioritize speed, convenience, and cost-effectiveness. The rise in demand for e-commerce, combined with changing business models and the growth of smaller, flexible office spaces near customer locations, has created vast opportunities for the sector to expand.
• Logistics is a critical determinant of trade within the country and is significant for India’s competitiveness in global trade as a whole. The cost of logistics as a percentage of the GDP in India is as high as 13%-14% compared to 7%-8% in developed countries and 9%-10% in other BRIC countries. A reduction of even 1% in the logistics cost would mean a saving of approximately INR 1.4 Lakhs crore per annum. Therefore, there is an inherent need to develop a robust, well integrated, and efficient logistics ecosystem in the country.
• The logistics sector has embraced technology to enhance speed, efficiency, and optimization. Companies are increasingly relying on automation, data analytics, and digital tools to better manage operations, streamline supply chains, and reduce costs. Warehouse automation, in particular, is helping to manage higher volumes of goods with fewer errors and lower labor costs.
• The explosion in online shopping has fuelled demand for efficient logistics and warehousing services. Consumers' focus on convenience and speed has made logistics companies adapt, focusing on last-mile delivery and faster fulfilment. This shift is propelling the sector to develop larger and more advanced warehousing solutions.

ECOSYSTEM SUPPORT

• In order to ensure comprehensive development of logistics infrastructure in the country, the Union Government of India has been taking multiple initiatives. These are primarily based on 4- pillars viz. infrastructure development, logistics planning, pro-active governance and adoption of technology. This includes easing of FDI norms, implementation of GST, stimulating growth of ecommerce, positive changes in regulatory policies, and all round infrastructure & industrial development through programmes like “Gatishakti”, “Sagarmala”, “Make in India” etc. The Government of India is coming up with 2-Dedicated Freight Corridors (DFC) i.e. Eastern Dedicated Freight Corridor (EDFC) and Western Dedicated Freight Corridor (WDFC) as high speed and highcapacity railway corridor for the transportation of freight. As these corridors reduce the logistics costs and timing of transportation, 2-prominent Industrial Corridors i.e. Delhi-Mumbai Industrial (DMIC) and Amritsar-Kolkata Corridor (AKIC) are coming up around both these DFCs.
• Other projects include Multi Modal Logistic Parks, Rapid Rail Transit System, Expressways, UDAN - Regional Air Connectivity Scheme etc. are also being implemented to reduce the cost of logistics spending from 14% of GDP to less than 10%.
• The Central Government is also emphasizing pro-active and effective governance for focused development of Logistics sector in India and has set up a dedicated Logistics Division to ensure coordinated growth of the logistics industry started in India in 2017. The Union Government has launched PM Gati Shakti National Master Plan in 2021 for integrated and comprehensive project planning for infrastructure and industrial development in India which will further improve the logistics in the country.
• To complement the PM GatiShakti NMP, the National Logistics Policy (NLP) was launched by the Central Government. While the PM GatiShakti NMP addresses integrated development of the fixed infrastructure and network planning, the NLP envisions to improve efficiency in services (processes, digital systems, regulatory framework) and human resource by providing a Comprehensive Logistics Action Plan (CLAP). The aim of the NLP is to develop a technologically enabled, integrated, cost efficient, resilient, sustainable and trusted logistics ecosystem in the country for accelerated and inclusive growth.

UTTAR PRADESH SCENARIO

• Uttar Pradesh is 4th largest state in India in terms of area and accounts for 17% of the population of India. Being strategically located adjacent to National Capital Region, it offers a lucrative gateway to eastern exporting ports and central India. The State offers a vast consumer and labour market to investors. Uttar Pradesh, with its investor friendly policies, reforms and proactive governance, has set a target to become USD 1 trillion-dollar economy. For this, the State Government is aggressively promoting rapid industrialisation and infrastructure development as manufacturing and logistics are intrinsically linked.
• In recent years, the State has established itself as a leading investment destination in India. Merchandise exports from Uttar Pradesh reached US$ 16.39 billion in FY21 and US$ 18.83 billion in FY22 (until February 2022). The State ranked 11th in India in terms of FDI inflows in 2021. In 2019, 147 investment intentions worth Rs. 16,799 crore (US$ 2.40 billion) were filed in the State (DPIIT). Given the emphasis laid on logistics development and for providing ease of logistics, Uttar Pradesh has been graded under “Achievers” category within the Landlocked cluster in Logistics Ease Across Different States (LEADS) Survey 2022. It has been recognised as one of the leader States, in terms of “quality of rail infrastructure” and leading State to process of integration of essential data layers on PM Gati Shakti portal (LEADS 2022). Previously, Uttar Pradesh has jumped 7 positions to rank 6th in the country in the last Logistics Ease Across Different States (LEADS) ranking 2021 and was categorised as “Top Improvers”. Also, UP is ranked no. 1 in India's Smart City Mission.

• 0% Catchment Area in AKIC
• 0.5% Catchment Area in DMIC
• 0 Clusters identified for Multi-Modal Logistics Facilities
• 0st Multi-Modal Waterways Terminal on River Ganga