In India, the logistics industry has a lot of potential for growth, and can be divided into four major categories, namely air freight, land transport, railway network and waterways transport. Air freight ensures the fastest delivery of goods through air transport, but is also the costliest means of doing so. Land transport uses the extensive road network in the country and is widely used for movement of heavy goods and machinery, vehicles, and so on. The country’s extensive railway network provides a cost effective mode of transportation, especially for industrial goods. The term waterways refers to transportation through ships. This is one of the oldest and a very effective means of goods transportation on an international basis. The Indian logistics industry has witnessed massive growth after the economic liberalisation of the country and the subsequent growth of trade and commercial activities. A number of major foreign logistics players have established their presence in the country, with the government allowing foreign direct investment into the sector. The need of the hour is to reduce the cost of logistics services as a percentage of the country’s GDP, so that goods made in India become more competitive internationally. The logistics industry is currently burdened with a number of problems such as the presence of a large number of unorganised operators, and poor condition of roads which delays the entire transportation process. The industry also lacks sufficient amount of skilled manpower, apart from significant IT sector penetration. Hide this