CONCLUSION

Indian Logistics industry is continuously improving its performance in the global logistics industry by improvement of customs, trade-related infrastructure, inland transit, logistics services, information systems, and port efficiency help to provide trade goods and services on time and at low cost. The World Bank's 2007th Global Logistics Report ranks India 39 amongst 150 countries in terms of logistics performance during the year as well as its future potential. Indian Logistics industry has low performance than developed countries like USA, UK and Singapore in global logistics sectors due inefficiency in logistics services and highest among the low-income group countries. India spend in Logistics activities equivalent to 13 % of its GDP is higher than that of developed countries. The key reason is the relatively high level of inefficiency in the system with lower average trucking speeds, higher turnaround time at ports and high cost of administrative delays. 3PL service provider share is less in logistics sector in India as compare to developed countries and still at the nascent stage. Multinational companies in all industries have been predominant users of this service as one of reason for lesser share 3PL in India. Also in India organised sector not well established as compare to developed nation this contain cost of inventory holding, transportation, warehousing, packaging, loss and related to administration is higher. In Indian logistics sector major sector investors are Aviation, Metal & Mining and Consumer Durable. Also logistics industry in India improves the performance of other industries year to year and share of logistics cost in sale also important which is maximum in cement sector. Transportation modes grow with of domestic and international market and in India road better mode of transportation because of well infrastructure of roads in India as compare to other mode like water, rail and sea. Road freight in India grows with increase of domestic and international trade also large area coverage. Railway freight also increases due low freight as compare to road but cover some of area and better for long distance movement of goods. Sea freight also increase better for overseas movement of goods at low cost as compare to air but consume more time as compare to air. Air mode of transportation is also helps in both domestic and international movement of goods but for international movement is more as compare to the domestic due to the higher cost, safe and faster way as compare to others modes.

FINDINGS

1. The logistics performance index shows the performance of country in the global
logistics industry, customs, trade-related infrastructure, inland transit, logistics services, information systems, and port efficiency are all critical to whether countries can trade goods and services on time and at low cost. Here India LPI score is 3.07 and secure 39th position in the global logistics industry. As the share of Indian Logistics Industry is more than the Mexico and less than the USA, UK and Singapore witness that Indian Logistics industry is one of the growth drivers for Indian economy.

2. In the global logistics sector India at the top position among the all the low income
group countries, that show that Indian Logistics sectors perform better among all the low income countries or developing countries.

3. Logistics cost contribution of India in GDP is 13 % which shows the high logistics
cost of the Indian Logistics industry and also higher than the developed countries. Due to the poor infrastructure and other logistics service is not better than the developed countries like USA and Japan.

4. 3PL service providers share is less in overall industry of India as compare to Japan,
USA and Europe. The third party logistics (3PL) market in India is still in a relatively nascent stage. While multinational companies in all industries have been predominant users of these services but the Indian companies are not. Also significant cost reduction and several other benefits provided by these companies. This is also one of reason of high cost in India.

5. Organized sector include the cost of inventory holding, transportation, warehousing,

packaging, losses and related administration which shows the high logistics cost in India due to less organized sectors. But organized sectors are well established in Japan, USA and Europe also one of the reasons to low logistics cost.

6. Major sectors investment in Indian Logistics industries are Aviation, Metal & Mining
and consumer durable. Among these sectors share of Aviation sector is higher due to increasing international business in India also cost of transportation is higher, fast and safe for overseas movement of goods.

7. Now 3PL service providers are start investment in India to reduce the logistics cost
which include both domestic and international companies. Shreyas Shipping and Logistics is investing high as compare to the DHL, TNT and Gati. This shows that trend of 3PL providers is increased in India.

8. Revenue generated from 3PL providers increase the Indian economy and also the
percentage growth the revenue increased continuously from 2005 to 2008. According to Planning Commission India this is growth continuous and it reached to $3556 million till 2012 is estimated.

9. Logistics industry also improves the performance of other industries in India as these
are auto, IT and pharmaceutical industries that shows high growth rate. Logistics grow with 810 % rate between 2002- 2007 implies that improvement in the supply chain of the other industries in India

10.Logistics cost play an important role for the growth of industry. Logistics cost
contribute to sale indicate importance of logistics in different industries. As logistics cost share in sale of cement industry higher than other industries shows it play an important role in sale.

11.Different transportation modes in India also improved with the increase in the
international market. Among the different modes of transportation maximum road is used most preferred mode of transportation due maximum area cover by the roads as compare to other modes of transportation. But maximum growth is shown by the rail and sea as compare to the road and air.

12. Road is use maximum for the movements of goods in India due better area coverage
of road as compare to the other modes of transportation and also the economic and faster some time due to that road is preferred first and maximum for the movement of goods in India, this shows the continuously improvement in roads freight in India.

13.Rail freight also increase with the improvement of logistics industry in India due to
less cost as compare to the other modes of transportation and also growth of the infrastructure of the railways.

14. Sea freight also shows the improvement due to better movement for the overseas
movement of goods and also least cost incur when shipping of goods by sea but it takes more time and less safe than the air modes.

15. Air mode of transportation is help in both the domestic and international movement
of goods as it incur high cost but this is safe and fastest modes of transportation than

the others modes. Air mode of transportation is used maximum for the overseas movement as compare to the domestic therefore growth in air mode of transportation higher in international level as compare to the domestic.

16. Cargo movement also witnesses the choice of the transportation mode in India;
movement of cargo by road is maximum than other modes. But sea and air mode shows the least percentage for the cargo movement due to less share of India in the International market as compare to the domestic.

17. Growth of container volume represents the increasing share of the Indian logistics
industry in International market as it is grow continuously from year to years. Road transportation is currently the most dominant form of transportation with more than half of the goods in the country being moved by road. Almost every mode of transportation in India is fraught with inefficiencies. For instance, ports that are vital for foreign tradehave very high turnaround times when compared with statistics for other countries. Similarly, the railways, which were a popular mode for freight transportation (especially the movement of bulk goods), have lost ground to road transportation due to limited access to smaller towns. Air, on the other hand, is a costly mode and its use is restricted to courier shipments. It is rarely used for bulk
transportation

18. Industrial cluster in India can be dividing into four economic zones based on the
concentration of the key industries like pharmaceutical, auto, textiles, machinery and electronic goods. West zone is show high attractiveness due most prominent destination for the Logistics industry. Also upsurge in the retail sector along with the fact that has several industrial clusters of industries.

SUGGESTIONS
Scheduling of service time point of arrival and departure of rails, ships and plane has
great scope for improvement. They never run on time and require national discipline.

Legal system is not in keeping with the modern outlook of life and business. The laws
are out mode and require comprehensive amendments. The laws are infect remnant of British Rule and provision contained therein do not meet the requirements of modern and complex international trade.

It augurs well observing development of national and selected state highways for
faster movement of traffic. It is response to free trade regime being speedily established under the compulsive auspicious of WTO in the interest of humanity. It is hoped that the implementation of the gargantuan project would be on schedule or at least without much time cost overrun.

In this connection the UPA-1 government initiated the greatest ever emphasis on
infrastructure development, general and specific ; UPA-2 has lent first priority and invited convergence of all ministries agenda to bear upon this infrastructure subject of international standard to facilitate movement of foreign capital with promise of high profitability as the country cannot movelise resources of the required dimension.

The system and procedure obtaining in government department are incontinent, time
consuming and not at all business centric. The official are trained as ever in manage development. There should be time to bound programme of simplify procedure and format.

Logistics development is absolutely necessary. In the absence of flow less and latest
logistics, the MNCs shy away from doing business in India. There is need to increase FDI in logistics sphere and relaxing of norms relating to entry, taxation, import of material handling and movement of equipment etc.

At present agriculture contribute nearly 25 % to Indian economy (GDP) and also

require development of warehouse sector. This service sector has good prospects of equipping top place in services of diverse types.