Ecommerce industry in India is growing with an exponential rate and it is expected that the e-commerce market in the country will reach $20 billion by 2020. The growth of e-commerce industry has a huge potential in the country transforming into a huge success for the manufacturing industry, infrastructure and jobs.
A recent study revealed that buoyed by the rising popularity of online shopping in India, the e-commerce market will see companies investing close to $2 billion in logistics, infrastructure and warehousing in the next six years. The Indian e-commerce industry will spend $950-1,900 million by 2017-2020 on infrastructure, logistics and warehousing as per the study.
The total amount spent on warehousing and sortation centres could go as high as 3-6 per cent of top-line revenues, which represents a collective spend of over $450-900 million of spend in warehousing till 2017-2020.[useful_banner_manager banners=27 count=1]
As per the study the industry might also spend an additional $500- 1,000 million during the same period on logistics functions, leading to a cumulative spend of $950-1,900 million till 2017-2020.
Besides, as per the estimations there could be an addition of 7.5-15 million square feet of space in the form of fulfillment centres over the next three to four years. So, if the estimation goes right, ideally there will be an addition of 6-12 percent to the space available in form of well thought-out warehousing in India and almost 25-50 percent of all the incremental addition of such warehousing space in the same period that are driven by the consumption that takes place.
The idea is that the potential of sector and the expected liberalization in form of FDI could be a very important factor in attracting significant investments resulting in better infrastructure and robust supply chains. And, this growth of e-commerce industry certainly has huge potential especially in terms of huge attainments it will bring for the manufacturing industry, infrastructure and jobs.
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