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Growth of India Packers and Movers Industry in GDP
Packers and Movers industry in India forms an important part of the logistics and transportation sector, which is considered to be one of the key drivers of the country's economic growth. The industry has seen significant growth over the years, and its contribution to India's GDP is also on the rise.
According to a report by Kane Research, the packers and movers industry in India was valued at INR 1.5 trillion in 2020 and is estimated to reach INR 2.2 trillion by 2025, growing at a CAGR of 8.2% during the forecast period. The growth of this industry can be attributed to various factors, such as increasing urbanization, increasing disposable income, and growth of the e-commerce sector.
The contribution of the packers and movers industry to India's GDP is significant, but exact figures are not readily available. However, it is estimated that the logistics and transportation sector, which includes the packers and movers industry, contributes around 13% to India's GDP.
In recent years, the Indian government has taken several initiatives to boost the logistics and transportation sector, such as the implementation of the Goods and Services Tax (GST), the development of dedicated freight corridors, and the setting up of logistics parks. These initiatives are expected to further boost the growth of the packers and movers industry in India and contribute to the economic development of the country.
The growth of India's packers and movers industry has been fueled by various factors, including increasing demand for relocation services due to job relocation and increasing urbanization, growth of the e-commerce industry, and growing awareness about the benefits of hiring packing professionals. awareness is involved. and moving services.
In addition, the pandemic-induced lockdown and work-from-home culture have increased the demand for relocation services, with people moving to bigger homes or migrating to different cities in search of better living conditions. This has further fueled the growth of the packers and movers industry in India.
The industry comprises a wide range of service providers including small-scale local packers and movers and large multinational companies. However, the industry is highly fragmented, with several unorganized players dominating the market. The lack of standardization in service offerings and pricing has been a major challenge for the industry, leading to wide variation in service quality and pricing across different service providers.
To address this challenge, the Government of India introduced RERA (Real Estate Regulation and Development Act) in 2016, which mandates the registration of all packers and movers service providers. This has helped in creating a more regulated market for packers and movers and also increased transparency and accountability among service providers.
Packers and movers industry in India has witnessed several technological advancements in recent years, which have helped the service providers to enhance the quality and efficiency of their service. Several players in the industry have adopted digital platforms to provide online booking and tracking facilities, allowing customers to book services and track their consignments in real-time.
The industry has also seen the adoption of advanced packing and moving technologies such as RFID (radio-frequency identification) tagging, which helps track and manage inventory and reduce the risk of loss or damage during transport.
In addition, the industry has also witnessed the emergence of eco-friendly packing and moving solutions, such as the use of biodegradable packaging materials and the adoption of green transportation practices. This has helped service providers to reduce their environmental impact and meet the growing demand for sustainable and eco-friendly services.
Packers and Movers Industry Challenges:
The packers and movers industry in India faces several challenges, such as a shortage of skilled manpower, high operating costs, and a lack of standardization in service offerings and pricing. However, with increasing demand for relocation services and government initiatives to boost the logistics and transportation sector, the industry is expected to overcome these challenges and witness significant growth in the years to come.
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Key Points of Growth of Packers and Movers Over the Years
The growth of the packers and movers industry in India can be attributed to several key factors. Here are some of the main points of growth of packers and movers over the years:
Increasing urbanization
The rapid urbanization in India has led to a surge in demand for relocation services, both for individuals and corporate clients. This has created a significant market opportunity for the packers and movers industry.
Growth of the e-commerce sector
The growth of e-commerce has led to an increase in demand for logistics and transportation services, including packing and moving services. The rise of online shopping has created a need for reliable and efficient last-mile delivery solutions, which packers and movers can provide.
Government initiatives
The Indian government has taken several initiatives to boost the logistics and transportation sector, such as the implementation of the Goods and Services Tax (GST), the development of dedicated freight corridors, and the establishment of logistics parks. These initiatives have helped to improve the overall infrastructure and create a more conducive environment for the growth of the packers and movers industry.
Technological advancements
The industry has witnessed the adoption of advanced technologies such as online booking and tracking facilities, RFID tagging, and eco-friendly packing and moving solutions. These technologies have helped to enhance the service quality and efficiency of packers and movers, making them more competitive and attractive to customers.
Increasing awareness
There is a growing awareness among consumers about the benefits of hiring professional packing and moving services. This has led to an increase in demand for reliable and trustworthy service providers, which has further fueled the growth of the industry.
Overall, the packers and movers industry in India has witnessed significant growth over the years, and its contribution to India's GDP is expected to continue to increase in the coming years. The industry is poised for further growth, driven by factors such as the increasing demand for relocation services, the growth of e-commerce, and the government's initiatives to boost the logistics and transportation sector.