Logistics of jobs

The Logistics sector is emerging as a major job creator in the country according to a recent survey report. Public investment coupled with consumption and industry evolution will drive the growth of the Rs 14,19,000-crore logistics sector and this is likely to result in 3 billion new jobs in the sector. This will make employment numbers jump from 10.9 million at present to 13.9 million by 2022.  In the recently released report of Teamlease on Indian Logistics Revolution - Big Bets, Big Jobs, the   infrastructure investment and GST implementation will help Logistics industry to grow at 10.5 per cent CAGR.

As per the 2018 Budget, public investment of Rs 6 lakh crore has been promised to infrastructure, of which 50 per cent will be go into building world-class road, rail freight, waterways infrastructure, and state-of-the-art multimodal logistics parks. This large scale investment is aimed at bringing down the logistics costs from 14.4 per cent of GDP by about 2 per cent over the next four years,  hence, stimulating the creation of more jobs in logistics sector. 

Economic growth, evolving regulation, rising outsourcing and high infrastructure investment are expected to create 1.89 million incremental jobs in the Road Freight whereas the Rail Freight sub-sectors will create 40K incremental jobs, over the next four years (2018 through 2022). The report also highlighted the fact that Air Freight will create 400,000 incremental jobs, and Waterways will create 4,50,000 incremental jobs due to growth of cargo in ports and ease of doing business which is making India a leading emerging market.

IT adoption coupled with packaging innovation, urbanisation, multimode transportation model and a fast growing customer segments and incomes will change the Packaging, Warehousing and Courier subsector. The Warehousing sub-sector will create 1,20,000 incremental jobs while the Packaging sub-sector is set to create 40,000 incremental jobs. The Courier Services sub-sector will see a growth of 60,000 incremental jobs over the next four years (2018 through 2022) 

The study further delves deep into the skill requirements in the Logistics sector. According to the survey there is a dearth of 9,50,000 jobs across 8 primary logistics sub sectors. The survey indicates severe short supply and lack of junior level talent in the sector. While in Ahmedabad, Kolkata and Chennai junior levels comprise 50 per cent or less of the total skill gap, Bangalore, Delhi and Hyderabad have surplus senior talent. With the creation on 3 million jobs spread across the country, this demand-supply ratio is likely to be met. 

KEY FINDINGS 

• The Rs 14,19,000 crore Logistics sector in India is set to create 3 million new jobs, over the next 4 years (2018 - 2022)
• Macro-economic and regulatory factors will transform the Logistics sector and improve its global competitiveness
• Each of the seven large, fast growing, logistics sub-sectors will create significant number of jobs over the next 4 years
• Developing and optimizing logistics infrastructure across the country will result in a pan-India distribution of the 3 million new, incremental, jobs