Making Logistics Employees Skillworthy

By 2022, the logistics sector is expected to employ more than 28.4 million employees from the current figures of 16.74 million. With logistics being a service oriented sector, skill development is emerging as a key capability. this makes it absolutely necessary for the government, training institutions, the logistics companies and the sector skill council to step up their efforts in building training capacity and offer industry-relevant skills to the candidates.

- Surya Kannoth

The Indian logistics sector is valued at $150 billion, contributing 14.4 percent to the country’s GDP. The sector is touted to cross the $200 billion mark by 2020 thanks to the easing of foreign direct investment norms, implementation of the Goods and Services Tax, increasing globalisation, growth of e-commerce, positive changes in regulatory policies, and government initiatives like ‘Make in India.’

According to a report by National Skill Development Corporation (NSDC), India will need around 28.4 million strong supply chain workforce in India’s booming transportation, logistics, warehousing and packaging sector. The sector, which currently employs over 16.74 million employees, is slated to employ more than 28.4 million employees by 2022.

While this sector is touted to have one of the highest incremental requirement of human resources to the tune of around 11.7 million during the period 2013-2022, the level of inefficiency in logistics activities in the country has been very high. The required pace of efficiency and quality improvement will demand rapid development of capabilities of logistics service providers. And with logistics being a service oriented sector, skill development is emerging as a key capability.

This makes it imperative for the government, the training institutions, the logistics companies and the sector skill council to build training capacity and offer industry-relevant skills to the candidates.