India's Logistics Sector Poised for Growth Amid Strategic Investments

The Indian logistics industry is projected to experience significant growth, driven by investments in rail, sea, and warehousing sectors. Despite challenges like competition in container freight and fluctuating global freight rates, improvements in infrastructure and policy initiatives are expected to boost profitability and operational efficiency.

The logistics industry in India is set for a robust growth trajectory as major investments funnel into rail, sea, and warehousing sectors, India Ratings revealed. The agency forecasts double-digit revenue gains for rail operators and stable growth in organic rentals for warehousing, with demand for Grade-A space holding firm.

Sea transport is poised for expansion due to improved port volumes and easing geopolitical tensions, like the Red Sea crisis. However, container freight stations face high competition, which may stabilize EBITDA. Government policies, such as the National Logistics Policy, are enhancing multimodal connectivity, thus favoring industry-wide growth.

Public-private partnerships are expected to boost port portfolios, with private investment set to expand trains and dry terminals. Initiatives like the Western Dedicated Freight Corridor will further improve operational profitability for container operators. The sector retains a stable outlook, thanks to effective asset utilization and capital investment strategies.

(With inputs from agencies.)