The logistics segment in India is estimated to be around 14 percent of the country’s GDP, which is much higher than the global average. This could be due to inadequate infrastructure leading to periodic bottlenecks along the routes. Another major reason is the regulatory loopholes, which raise the cost of service and causes delays. However, the infrastructure will certainly see brisk development in the coming years, with the Government attaching high priority to this sector. The road sector alone will see investments of about Rs 1,52,000 crore between 2006 and 2012. Airports, which together handled a cargo of 1.4 million tonnes last fiscal, as against 0.65 million in 1995-96, will also see significant expansion and development.
 
The logistics companies at present provide services from transportation to warehousing and inventory management.  But in the near future, they will have to expand their products basket to include new value-added services, such as packaging, labeling and reverse logistics.