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Mumbai, Aug 20 (PTI) The express logistics and courier sector is expected to touch USD 18-22 billion by FY2029-30 from an estimated USD 9 billion in FY2024-25, supporting 6.5-7.5-million jobs, according to a report. The report also noted that the express industry has transformed from a logistics facilitator to an essential service provider, playing a critical role during the COVID-19 pandemic in supporting the world's largest vaccination drive and ensuring priority delivery of essential goods.
Express logistics and courier sector to touch USD 18-22 billion by FY30: Report
Mumbai, Aug 20 (PTI) The express logistics and courier sector is expected to touch USD 18-22 billion by FY2029-30 from an estimated USD 9 billion in FY2024-25, supporting 6.5-7.5-million jobs, according to a report.
The report also noted that the express industry has transformed from a logistics facilitator to an essential service provider, playing a critical role during the COVID-19 pandemic in supporting the world's largest vaccination drive and ensuring priority delivery of essential goods.
The report “Express Industry in India 2025: Powering India's Economy, Connecting Businesses and Markets," commissioned by Express Industry Council of India (EICI) and KPMG has also identified five priority areas–agility and adaptability, efficiency improvements, customer centricity, a sustainable operating outlook and a robust policy and regulatory framework– for unlocking future growth. It also calls for targeted policy measures, infrastructure expansion and technology adoption, supported by initiatives such as PM Gati Shakti, the National Logistics Policy and Bharatmala Pariyojna.
Post-pandemic growth is being driven by high internet and smartphone penetration, exponential growth of e-commerce, the rise of MSME output and significant infrastructure expansion into tier II and III cities, said the report, released by Union Minister for Road Transport and Highways Nitin Gadkari along with senior government functionaries, industry leaders and other stakeholders at an event in New Delhi late Tuesday.
The sector expanded from USD 3 billion in FY17 to USD 9 billion in FY25, recording a compound annual growth rate of 12 to 15 per cent. It is expected that the market will double to between USD 18 and 22 billion by FY30. By FY25, the express industry is expected to support between 2.8 and 3 million jobs, the report stated.
Besides, it is estimated the sector will make a significant contribution to GST revenues of USD 1 to 1.5 billion and customs revenues of USD 650 million as well and act as a vital enabler for e-commerce, MSMEs and cross-border trade, it said.
The domestic express accounts for about 70 per cent of the total market, valued at USD 6.3 to 6.5 billion, with surface express contributing the largest share.
“The express industry has become a critical pillar of India's economy, connecting businesses and markets with speed and reliability. From supporting the world's largest vaccination drive to enabling e-commerce, MSMEs and exports, our sector has shown agility, resilience and innovation.
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Domestic express, which makes up around 70 per cent of the market, is led by surface transport growth, while international express is expanding rapidly with global demand for Made-in-India products," SAID Vijay Kumar, CEO, EICI.
India's express logistics industry is undergoing rapid transformation to meet the growing demand for fast and reliable delivery solutions' not only through air, but also across road, rail, and coastal networks, said Girish Nair, Partner, Mobility and Logistics, National head- Aviation Sector, Global Lead-Airports, KPMG in India. PTI IAS MR MR
Source: News18
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