Written by 09:40 Tech News Views: [tptn_views]

Unraveling India’s Outdated Logistics System: The 5 Factors That Hold Back Progress

Sometimes, and quite ironically, the fastest growing economies house the most archaic systems. Take for instance, the logistical sphere of India. Despite its exponential economic expansions, India’s supply chain infrastructure is reminiscent of times long past, plagued by inefficiencies and fragmentation. It’s time to dissect the realities of India’s logistics sector, revealing the challenges that it faces.

1. Fragmentation: A Bane of Efficiency

The first crack in the system is the high degree of fragmentation. Numerous small, regional operators conduct the symphony of transportation and delivery. The lack of a cohesive, large-scale approach leads to inefficiencies, slowing down a sector aiming to support an agile economy.

2. The Reliance on Antiquated Methods

Even in this digital era, India’s regional transporters depend heavily on word-of-mouth and brokers to secure cargo. This non-digitized method stifles speedy communication, and impedes overall progress of the logistics scene.

3. Unresolved Truck Shortages

A lack of trucks is not just an inconvenience, it is a threat to any thriving logistics system. In the case of India, there are severe truck shortages. It brings a domino impact, triggering delays that ultimately weakens the supply chain structure.

4. Limited Scale of Operation

Regional operators, owing to their lack of capacity, rarely function beyond certain geographical confines. Thus, lack of scalability largely restricts their reach, constricting the flow of goods and services across regions.

5. Stagnation in a Fast-Paced World

Arguably the biggest paradox of it all is how a system is unable to evolve in line with the growth of its own economy. The Indian economy is speeding ahead, but the logistics system – pivotal to support this growth – is stuck in a time warp.

For any economy, logistical efficiency is the underpinning of growth and progress. The stark contrast between the leaps of the Indian economy and the stagnation of its logistics brings to the fore the structural problems plaguing the latter. Fragmentation, an over-reliance on outdated methods, truck shortages, limited scale of operations, and an overall resistance to change are the facets that need attention. Only by addressing these factors can India propel its logistics system into the future, aligning it with the fast-paced development of its economy.

Credit: BBC. TechCrunch, Reuters