The positive momentum in the logistics sector is expected to bring a significant employment synergy in the ecosystem. The sector, which is growing at a 12% CAGR, is expected to add 10 million jobs by 2027, said a new report.
According to staffing company, TeamLease Services, the transition from the unorganised to the organised sector adds to the momentum, acting as a further catalyst for industry expansion.
The report added that propelled by recent industry reforms including the government’s Production-Linked Incentive (PLI) scheme, robust production figures encompassing both domestic and export activities, as well as changing consumption patterns influenced by rising disposable incomes, decreasing inflation rates, innovative business models such as 3PL (Third-Party Logistics) and surging rural demand; India’s logistics industry is poised for rapid growth in the coming years.
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The increased demand is not only reshaping the logistics industry, but it is also opening up a slew of new job opportunities. Diverse job profiles in the industry are seeing a significant increase in demand.
Supply Chain Managers are in charge of optimising the overall flow of goods, Logistics Specialists are in charge of meticulously handling the planning and organisation of goods, Distribution Managers are in charge of ensuring the timely delivery of products to customers, and Warehousing Managers are in charge of adeptly overseeing storage operations. This surge in demand reflects the dynamic evolution of the logistics sector, which offers a wide range of roles to meet the industry’s growing demands.
Balasubramanian A, vice president and business head, TeamLease Services, said, “As India’s logistics sector continues to expand, it is critical to understand the forces driving this remarkable transformation. We are witnessing the emergence of a dynamic industry that is poised to create approximately 10 million new job opportunities over the next five years, owing to a significant increase in both production and consumption. This increase in output has increased demand for logistics services such as transportation, warehousing, and distribution.”
“Furthermore, shifting economic dynamics such as rising disposable incomes, lower inflation rates, and rising rural demand have sparked a nationwide consumption boom,” Balasubramanian added.
The increased job creation in the logistics sector is expected to result in substantial changes in the industry’s skill requirements. As logistics hubs become cutting-edge, world-class facilities, there is an increasing reliance on automation, Artificial Intelligence (AI), and Machine Learning (ML) for sophisticated demand forecasting and supply chain planning.
“This transformative trend reduces reliance on unskilled labour while emphasising the critical need for a highly skilled workforce skilled in technology. Furthermore, this integration of technology and automation is expected to result in significant increases in workforce productivity. As a result, even as the flow of goods increases, the expansion of the workforce will be proportionally limited. This highlights the critical importance of having a larger but technologically adept workforce,” added Balasubramanian.
Apart from the usual suspects which are the major metropolitan cities that lead the pack in terms of job creation, cities such as Indore, Guwahati, Nagpur, Jaipur, Vadodara and Lucknow are also expected to grow at an even faster rate and join the league of major hubs around metros.
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