Express Industry Council of India and Deloitte Peg Indian Express Industry Growth at 17 percent CAGR; To Reach INR 48,000 Cr. By 2023
- (L-R) Mr. Anand Mohan Jha, Head SSC Governance, NSDC; Mr. R. S. Subramanian, Country Manager, DHL Express India/Vice Chairman, EICI; Ms. Seema Jere Bisht, Additional Director General, Risk Management, CBIC; Mr. Angshumali Rastogi, Director, Ministry of Civil Aviation and Mr. Vijay Kumar, Chief Operating Officer, EICI unveiling the report titled ‘Indian Express Industry 2018’
- Indian express industry contributes INR 5,000 cr. to the national exchequer
- Employee base set to expand from 16 lakhs to 26 lakhs: generates huge employment potential
- E-retail to be a key growth driver of the Indian express industry; contributed ~INR 5,000 cr. in FY17
As one of the fastest growing markets globally, the Indian express industry is expected to grow at a CAGR of 17% and reach INR 48,000 cr. by 2023, according to an independent study led by Deloitte. The report titled ‘Indian Express Industry-2018: A multi-modal play in building the ecosystem’ forecasts this growth as being primarily driven by the growth of cross-border and domestic e-commerce in India, and significant demand from the small and medium B2B segment.
Hon’ble Minister for Commerce & Industry and Civil Aviation, Shri. Suresh Prabhu launched the report earlier in the day. Commenting on the report, he said, “The express industry is a key enabler for the growth of India’s trade and economy. Factors such as ease-of-logistics will increasingly play a critical role in attracting investments into the country, which will, in turn, support the development of several industries involved in manufacturing. We are pleased to see the industry sustaining its growth momentum, and also acting as a major contributor to employment generation within the country.”
The report highlighted that with the rise of new age business models and SMEs, and economy on the path of revival, there has been a considerable focus on improving India’s logistics performance. It also indicated that the industry grew at 15% CAGR over the past five years and is estimated to be worth INR 22,000 cr. in FY17.
In FY17, the express industry contributed ~INR 3,000 cr. in Service Tax and INR 2,000 cr. in Custom Duties besides direct taxes around employment creation, thereby contributing to the national exchequer.
The study attributes e-retail to be a major growth driver for the industry with over 13 lakh shipments from this sector shipped daily. It contributed INR 5,000 cr. in FY17 to the Indian express industry. The distinct nature of this sector has also led to several new trends in the industry thereby challenging traditional express operations. These include the adoption of alternate delivery methods, customer centric deliveries, shift from air express to surface express, increase in regional movements, adoption of technology and expansion to remote locations.
Speaking about the industry outlook, Mr. Vijay Kumar, Chief Operating Officer, EICI, said, “The express logistics landscape is undergoing a huge transformation due to the need for time bound delivery services to complement the growth of trade. As a key enabler of trade, the industry will also support and benefit from the e-retail boom in India. We also anticipate the express industry to provide a significant boost to India’s employment base to increase to 26 lakhs. Regulatory and policy changes, and infrastructure enhancements will also give a much needed fillip to the industry, which will positively impact the growth of other sectors.”
About Express Industry Council of India
Established in 1997, the Express Industry Council of India (EICI), a not-for-profit organization, is the apex industry association that represents leading international and domestic express companies in India. EICI is the key driver of policies impacting the express industry that aims to create a favourable environment for the express industry and its users. EICI operates Common User Express Terminals at Mumbai, Delhi and Bangalore Airports. EICI with Indian Customs has jointly and successfully developed and implemented a state of the art electronic Express Cargo Clearance System (ECCS) for Custom clearance of express shipments, which will increase India’s global competitiveness.