Demand-Supply Gap of Skilled Manpower In Logistics Sector

▪ Logistics Sector employs about 22 million as of 2016. Of 22 million 42.14 % are employed in passenger roadways segment, 38% in road fright while remaining are in passenger railways, freight forwarding, warehousing, packaging, and other services.
▪ As per the National Sample Survey, the distribution of employees is mainly in Mumbai, Kolkata, Hyderabad, and Ahmedabad Districts whereas emerging clusters include Bangalore, Surat, and Indore.
▪ There has been no formal training in the country to address the skill gap in the logistics sector.
▪ Thrust on infrastructure projects such as the dedicated Freight & Industrial Corridors like DMIC, expansion of Port Terminals, and construction of greenfield Port projects under Sagarmala project and Bharatmala project will create fresh employment opportunities.
▪ Increasing income levels and rapid growth in organised retail, e-commerce, QSR, etc. will create new opportunities for the youth.
▪ With 100 percent FDI through automatic route permitted, and the implementation of GST FMCG is expected to grow at over 12 percent CAGR during 2010- 2020

SCOPE FOR SKILL DEVELOPMENT IN THE LOGISTICS SECTOR

It is estimated that the total workforce will increase from the current 21 million to over 31 million by the year 2022. That means this sector alone will generate additional requirements of over 9 million people across all the modals-roads, railways, ports, and aviation. Government and associated stakeholders including sector skill councils, training institutions, and logistic firms will need to ramp up their training capacity to cater to the growing training needs of the sector. It will also involve various efforts such as
▪ The creation of Kaushal Kendras for every sub-sector addressing the demand
▪ Engage with the Logistic Companies to invest in skill development as their CSR activity
▪ Review and update the existing QP/NOS as per the sector requirement.
▪ Synthesise the various training programs and educational courses and align them to the job roles in the logistics sector that would allow for career progression and lateral mobility
▪ Bring in transnational equivalence of the QP/NOS which would permit placement of LSC certified candidates abroad.