India's Cold Chain Market To Hit Rs 5 Lakh Crore By 2032, Backed By PM Gati Shakti And Logistics Policy

India's cold chain market is poised for remarkable growth, projected to expand from Rs 2 lakh crore in 2023 to Rs 5 lakh crore by 2032, according to Surendra Ahirwar, Joint Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT).

This growth trajectory is largely attributed to key government initiatives, including the PM Gati Shakti-National Master Plan (PMGS-NMP) and the national logistics policy (NLP).

Speaking at the FICCI-Cold Chain and Logistics Summit on Wednesday (29 May), Ahirwar underscored the existing challenges in the logistics sector, such as subpar roads and inefficient ports, which impede progress. He emphasised that government schemes are strategically designed to mitigate these issues and bridge infrastructural gaps.

"The emphasis on developing physical infrastructure through these initiatives will not only bolster the logistics sector but also enhance the efficiency of temperature-controlled warehousing, thereby making the cold chain sector more effective," Ahirwar remarked.

Furthermore, granting infrastructure status to warehousing facilities and cold chains has facilitated easier access to credit, aiding the development of cold chain infrastructure.

Ahirwar also highlighted significant innovations in the cold chain sector, such as ice batteries that maintain uninterrupted temperature control during power outages and cube packaging that extends product shelf life. These advancements are crucial for the sector's efficiency.

In addition, the government has launched digital initiatives like the Unified Logistics Interference Platform (ULIP), which allows for tracking every stage of the supply chain from production to market. "ULIP serves as the national data gateway for all logistics-related transactions, enabling comprehensive tracking of goods from their origin to their final destination," Ahirwar explained, reports Economic Times.

PM GatiShakti National Master Plan and National Logistics Policy

Complementing the PM GatiShakti National Master Plan, the National Logistics Policy (NLP) was launched in September 2022. While PM GatiShakti NMP focuses on the integrated development of fixed infrastructure and network planning, the NLP addresses the development of soft infrastructure and the logistics sector, including process reforms, improvement in logistics services, digitisation, human resource development, and skilling.

The vision of the NLP is to drive economic growth and enhance business competitiveness in the country through an integrated, seamless, efficient, reliable, green, sustainable, and cost-effective logistics network. Leveraging best-in-class technology, processes, and skilled manpower, the policy aims to reduce logistics costs and improve overall performance.