Logistics market size is expected to be US$125 billion in year 2010

With India's gross domestic profit growing at over 9% per year and the manufacturing sector enjoying double digit growth rates, the Indian logistics industry is at an inflection point, and is expected to reach a market size of over $125 billion in year 2010 . Logistics involve movement of materials ,information, manpower and money from one state to anyother state in a country and from one one country to another country in the present globolised  scenario.With the predicted  India's gross domestic profit (GDP) growth of over 9 percent per year,consumer spending growth rate of 12% per year,food service industry growth rate of 5%per year, the Indian logistics industry is expected to grow at more than 20 %per year over the next three years .
As a result of the under-developed trade and logistics infrastructure, the logistics cost of the Indian economy is over 13% of GDP, compared to less than 10% of GDP in almost the entire Western Europe and North America. The Indian logistics industry is characterized by dominance of a disorganized market. India spends 15 to 20% of its GDP on logistics compared to an average 8 to  10% in other developing countries. Worldwide, better supply chain management has reduced logistics costs by nearly 1% in 10 years.

Drivers for logistics sector growth:

• Underdeveloped trade and logistics infrastructure
• $475 billion worth of infrastructure investments in the five year plan ending2012
• Entry of organized retail and agri-processing industries
• Phased introduction of value-added-tax (VAT)
• Strong foreign direct investment inflows (FDI) in automotive, capital goods, electronics, retail and telecom
• Leading manufacturers realign their global portfolios of manufacturing locations to India
• Favaouable demographic –With  a median age of just over 20 years—one of the lowest among developed and emerging economies.
• By 2016, more than one-third of India’s population will reside in urban areas.
• India also possesses a huge pool of skilled, English-speaking labor.
• Every year, it adds 2.3 million college graduates (including 400,000 engineering graduates) to its workforce.
• Raising income levels
• Increasing urbanisation

Logistics industry segments include air freight, road freight, rail freight, "courier, express and parcels" (CEP), sea freight, multimodal transportation and container logistics