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Planned Indian e-com export hubs may transform logistics sector: Study

31 Aug '24
2 min read
Planned Indian e-com export hubs may transform logistics sector: Study
Pic: Adobe Stock

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  • India's plan to set up 50 e-commerce hubs is poised to transform the logistics sector, witnessing a 12-per cent annual growth rate now, and may create up to 275,000 lakh jobs in the sector, a study by TeamLease Degree Apprenticeship revealed.
  • It highlighted the sector's highly unorganised nature and lack of formalisation as the major challenges.
India’s plan to set up 50 e-commerce hubs is poised to transform the logistics sector, currently witnessing a 12-per cent annual growth rate, and may create 225,000-275,000 lakh jobs in the sector, according to a study by TeamLease Degree Apprenticeship.

The expansion has extended beyond entry-level positions, with a marked increase in marketing, merchandising and management roles, reflecting the sector's growing complexity and scope, said the study report.

As logistics apprentices grew from 400 in 2018-19 to over 20,000 in 2023-24 and e-commerce hubs and the logistics sector expanded, a 50-per cent year-on-year increase in apprentices is projected over the next three years, Ramesh Alluri Reddy, chief executive officer of the company, was cited as saying by domestic media reports.

“The industry's evolution has spurred a shift towards outsourcing tasks traditionally managed in-house, particularly in HR [human resources] and administrative functions, with a significant number of businesses adopting this approach, underscoring the broader impact of e-commerce on employment patterns as the sector continues to drive a wave of employment opportunities in the country,” said the report.

There has been a rise in the integration of advanced technologies such as artificial intelligence, robotics, data analysis and cybersecurity into the logistics sector, the study revealed.

“This technological shift has led to rising demand for specialised roles across various sectors, including retail management, cross-border trade, logistics and supply chain coordination, global marketplace operations, digital payment solutions, data analytics, international customer support, export compliance, international marketing, sustainability, and tech-enabled trade facilitation, emphasising the need for professionals with the skills to optimise these technologies for efficiency and growth,” the report added.

It highlighted the sector’s highly unorganised nature and lack of formalisation as the major challenges. Only 10 per cent of the sector comprises formal players and just 4.5 per cent of the workforce is appropriately skilled.

Fibre2Fashion News Desk (DS)

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