We expect positive growth across the board in India's freight transport sector in 2015 and over the medium term. However, the growth will not be even, with the anticipated expansion in air freight especially to outperform, while road freight - where growth will be tempered in the near term by a gloomy outlook for agricultural produce - will lag.
India's trade will enjoy growth in real terms in 2015 (ending March 2016), driven by an expansion in both imports and exports. In real terms, we forecast an expansion of 1.8% in total trade this year, thanks to a real expansion of 1.0% in imports and 2.5% in exports. Growth in trade will accelerate moderately in 2016, when we forecast growth of 2.7%. In nominal terms, however, there will be a contraction in 2015, when we expect that trade will shrink by 1.4% to USD986.6bn. Growth will return next year at 5.7%, leading to trade worth USD1,043.1bn. Imports will account for the greater proportion of this, at USD538.3bn to exports' USD504.8bn, thanks to India's trade deficit.
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Reflecting the size of the country, India's road freight network is huge, and we forecast that 7.03bn tonnes will be transported by road haulage in 2015, ending March 2016. If realised, this would represent growth of 2.4%, a slight slowdown on last year's 3.6% expansion rate. Consumer demand is the key driver of road haulage volumes in India, but given the country's sizeable manufacturing base, growth in road haulage will also be driven by goods exports. Agricultural produce is also transported by road, and a less sanguine outlook in this regard has tempered our growth near-term forecasts, but has the potential to boost volumes looking further ahead.
The India Freight Transport Report has been researched at source, and features latest-available data covering commercial transport and logistics by road, rail, air and water; industry forecasts, company rankings covering leading national and multinational operators; and analysis of latest industry trends, opportunities, projects and regulatory changes.
BMI Research's India Freight Transport Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Indian freight transport and logistics industry.
Key Benefits
* Benchmark BMI's independent freight transport industry forecasts on India to test other views - a key input for successful budgetary and planning in the strategic freight transport market.
* Target business opportunities and risks in the Indian freight transport sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in India.
* Assess the activities, strategy and market position of your competitors, partners and clients
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Market Report, "India Freight Transport Report Q1 2016", published
Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001