The Logistics and Mobility sectors are high-growth sectors in India that German startups can make a difference in. Read on to learn the key drivers behind this growth and the potential areas of disruption and innovation for startups.
Key drivers leading the transformation of India’s logistics ecosystem
India’s logistics sector is supported by government reforms and expenditure on investment in logistics is expected to reach US$500 billion annually by 2025 according to the Ministry of Commerce & Industry. The development of logistics related infrastructure including logistics parks, free trade warehousing zones and container freight stations are expected to improve efficiency in the sector.
With growing retail and eCommerce sales, last-mile delivery is an especially attractive and underserved opportunity. B2B logistics startups are offering technologies and solutions to meet the needs of large supply chain and logistics organisations – from warehousing operations to demand forecasting, highlighting a wide scope for technological disruption.
Explore new opportunities in India’s growing logistics tech space
Logistics startups employing technology such as automation, data analytics, and Internet of Things (IoT), have the potential to disrupt the logistics market. Supply Chain Labs, a Supply Chain focused Fund and Accelerator in India (supported by Lumis Partners) highlights sub-segments of interest in India in the graphic below:
India’s transition to a shared, electric and connected mobility system
Rising traffic congestion and longer urban commutes are leading people in India to look for more convenient, affordable, and time-efficient travel options. Along with rapid urbanization and increasing pollution levels, the transport sector is seeing a dire need for zero emission vehicles and shift towards cleaner technologies. R&D and innovation is another focus area in India’s automotive industry to promote electric and smart manufacturing as witnessed by the following trends:
- Expanding R&D Hub: Invest India reports that India accounts for 40% of total US$31 bn of global engineering and R&D spend, and 8% of the country’s R&D expenditure is in the automotive sector.
- Recent/planned startup investments and developments in the automobile sector in India include an investment of US$501 million in India’s auto-tech companies startups in H1 2019, according to Venture Intelligence.
- SAMARTH Udyog – Industry 4.0 centres: Demo or experience centres are being set up in the country for promoting smart and advanced manufacturing helping SMEs to implement Industry 4.0 (automation and data exchange in manufacturing technology)