Lok Sabha Election Results 2019: What logistic sector expects from Modi government in 2nd term
The performance of logistic stocks has been volatile during the counting of votes on Thursday.
The Lok Sabha polls are suggesting NDA government win with 349 seats. This would be for the first time when BJP gets a second term. So far, Congress party is expected to bag 93 seats, while remaining are divided between other parties. The logistic stocks performance has been volatile during the counting of votes on Thursday. Stocks like Starlog Enterprises, Balurghat TechNorth Eastern Carrying Corp saw uptick of over 5%. While stocks like VRL Logistics, TAAL Enterprises, Global Vectra and Tiger Logistics saw plunge in their valuation on stock exchanges.
Just like every other sector, the logistic industry has also pinned hopes and reforms from NDA government in their next five year tenure.
Prakash Tulsiani, Executive Director & CEO – CFS, ICD, Shipping & Investor Relations, Allcargo Logistics said, “The overwhelming election verdict will definitely encourage the new government to intensify its development agenda. The new wave of development and the benefit of policy continuity will positively impact the $160 billion logistics sector which is expected to grow to $215 billion in the next two years.”
Explaining the needs of logistic sector, Tulsiani said, “now looking for stronger and deeper adoption of digital technologies. While we continue to work towards increasing the pace and size of creating physical infrastructure within the logistics sector, it is essential that we also invest in digitalization of the sector to increase operational efficiency and reduce cost.”
“Adoption of new technologies along with digitalization of the sector is likely to throw up new challenges in term of manpower and skills. Creating a completely new skilling ecosystem that will address this change will be essential,” said Tulsiani.
Finally, he said, “New and emerging technologies like blockchain, AI and robotics are completely redefining the global logistics business. The pace of large scale adoption must pick up.”