The domestic logistics sector is set to grow at 8-10 per cent over the medium term with the outlook remaining largely stable, ratings agency ICRA said. The key drivers for demand pick-up would be the festive season as well as the anticipated revival in infrastructure spending post monsoon and improvement in receivable cycle of contractors, it said in a statement. “ICRA Research has forecast the domestic logistics sector to grow at 8-10% over the medium term with the outlook remaining largely stable,” it said. The ensuing demand momentum will lead to higher freight volumes in the second half of FY2020 despite weak macroeconomic scenario, it added. ICRA expects the Indian logistics industry to continue evolving/being shaped in the medium term as reflected by the on-going trends. This includes trends like shift towards organized players post GST and E-way bill implementation, focus on multi-modal offerings, increasing interest by private equity and foreign players in the space, emergence of e-commerce logistics requirements, focus on warehousing and cold chain services, and increased adoption of technology.

(Economic Times)