FMCG, E-COMMERCE AND OTHER SECTORS

FMCG, E-Commerce and Other Sectors

These sectors can broadly be classified under 5 heads viz. healthcare & pharma, consumer segments & retail (FMCG), Consumer durables and electronics, automotive & engineering, other sectors including textiles, gems & jewellery, e-commerce, etc. The government has also identified sectors, including auto components, textiles, industrial machinery and furniture, where India has a competitive and comparative advantage over other countries.

With increased demand in e-commerce, service delivery levels have become increasingly competitive and its proliferation has thrown new challenges with respect to first and last mile connectivity. Implementation of new technologies like delivery through drones, advanced robotics, and hands-free pick, pack, ship, are the key for faster order processing and ensuring the competitiveness in e-commerce logistics

A key challenge for these sectors to achieve price competitiveness is smaller than viable parcel size of goods in these sectors for storage, packaging, transportation etc. Following measures to address these issues will be taken:

  1. A digital mapping of resources will help in aggregation of lots by enabling sharing of capacities. This will help in economising various component costs in logistics.
  2. An increased focus on the rail parcel business to enable aggregation in transportation to bring economies of scale.