From tariffs to tech Indian logistics plans to double in size by 2030

The Express Industry Council of India (EICI) targets a 2x growth trajectory by 2030, the sector faces a mix of geopolitical headwinds and domestic opportunities. In this discussion, Vijay Kumar, CEO of EICI spoke to Divya Shah about the strategic positioning of Indian logistics players in response to 20-50% US trade tariffs.

- Vijay Kumar

He further highlights the modernisation of India's supply chain, detailing the transition toward automated gateways, the push for integrated customs systems, and the crucial need to solve rail freight bottlenecks to unlock the next phase of efficiency.

How is EICI positioning itself regarding the recent 20% to 50% trade tariffs imposed by the US on Indian exports? What are the implications for express logistics players?

The impact is primarily positive for the domestic industry due to rate rationalisation. Domestic consumers have gained from rates going down. Consequently, as we enter the holiday season, we presume there will be significant additional volume growth, especially in the B2C segment.

However, regarding the specific US tariffs, there has been some pain for exporters due to the $800 limit changes in the US. The current tariff regime (25% + 25%) has injected uncertainty. While there was a dip in US-bound shipments, our exporters also have a fair mix of geographies like Europe and Asia, which balances the impact.

Apart from the festive spike, do you see considerable volume growth in the coming year? Has there been any change in GST rates for the express industry?

No. For our industry, there has been no change. We were at 18%, and we continue to remain at 18%.

Internationally the impact of GST is minimal here as exports are largely zero-rated. Growth here depends more on geopolitical issues.

As of domestic, we expect year-round impact. With GST rationalisation, volumes, especially in the B2C segment, typically rise from mid-September (Onam) through Christmas. We also expect the B2B segment to be positively impacted.