India Supply Chain Management Market Outlook to 2028

India Supply Chain Management Market Overview

• The India Supply Chain Management market, with an estimated value of 3.5 billion, reflects a robust growth trajectory spurred by the rise in e-commerce and digitalization of logistics. The market has benefited from government initiatives promoting digital logistics infrastructure, which streamlines cross-border trade and boosts efficiency.

• Major cities such as Mumbai, Delhi, and Bengaluru lead the India Supply Chain Management market due to their strategic roles as logistics and trade hubs. These urban centers possess advanced infrastructure and proximity to ports and highways, making them ideal for supply chain operations.
• To support cross-border trade, the government launched a digital Single Window Clearance System in 2023, allowing companies to manage customs procedures seamlessly. With the system processing over 2 million applications in 2024 alone, this initiative significantly reduces customs clearance times and enhances Indias export capabilities.

India Supply Chain Management Market Segmentation

By Solution Type: The India Supply Chain Management market is segmented by solution type into Transportation Management Systems (TMS), Warehouse Management Systems (WMS), Inventory Management Solutions. Recently, Transportation Management Systems (TMS) have a dominant market share in India under the solution type segment. This is due to the critical role TMS solutions play in addressing logistics complexities and optimizing the distribution network. Top logistics providers have adopted TMS to manage fuel efficiency, reduce delays, and improve cost-effectiveness.

By Deployment Model: The market is segmented by deployment model into On-Premises Solutions, Cloud Solutions and Cloud-based solutions have gained significant traction due to their scalability, reduced infrastructure costs, and the ability to provide real-time data access. Small and medium-sized enterprises increasingly prefer cloud solutions for their cost-effectiveness and flexibility in scaling operations as per demand.

India Supply Chain Management Market Competitive Landscape

The India Supply Chain Management market is dominated by major players like SAP SE, Oracle, and Blue Yonder, leveraging innovative technologies and strategic partnerships. This market consolidation underscores the influence of these key players in shaping industry standards.

India Supply Chain Management Market Analysis

Growth Drivers

• Automation Adoption in Supply Chain Operations: With over 150 million parcels shipped daily in Indias logistics network, automation has become a key priority. Automation solutions, like automated sorting and packaging systems, are increasingly implemented to handle this massive volume, thereby reducing dependency on manual processes and minimizing errors. This adoption is driven by the need for efficient handling of high shipment volumes and reducing operational turnaround time. Government data shows an allocation of over 100 billion INR to automation and digital transformation in logistics to streamline operations.
• Logistics Infrastructure Investments: India has earmarked approximately 400 billion INR in 2024 towards upgrading logistics infrastructure, encompassing road, rail, and port development projects aimed at easing cargo movement across states. This allocation supports infrastructure projects under schemes like PM Gati Shakti, enhancing freight corridors, reducing transit times, and lowering transportation costs, especially critical for supply chain management (SCM) stakeholders. These investments directly benefit supply chain efficiency and capacity across industrial and rural regions.
• Demand for Real-Time Visibility: Indian supply chain companies are investing over 50 billion INR in real-time tracking and visibility solutions, catering to the increasing demand from manufacturers, retailers, and consumers. Real-time visibility platforms support accurate shipment tracking, location-based services, and proactive notifications, making it possible for companies to streamline inventory management. The demand for such transparency is driven by India's high shipment volume, which continues to grow alongside the booming e-commerce sector.

Market Challenges

• Fragmented Vendor Base: Indias supply chain market is challenged by a fragmented vendor base, with around 60% of suppliers operating at a small or unorganized scale. This lack of consolidation among suppliers often leads to inconsistencies in quality, delayed shipments, and fluctuating service reliability. These challenges add complexity to supply chain management, affecting scalability and efficiency for larger SCM operations.
• Limited Skilled Workforce: The logistics and SCM sector faces a shortage of skilled labor, with an estimated gap of 1.2 million professionals in critical roles. This talent shortage affects areas like inventory management, demand forecasting, and supply chain analytics. Moreover, the limited availability of specialized training programs compounds the issue, slowing the adoption of modern SCM practices across the industry.

India Supply Chain Management Market Future Outlook

Over the next five years, the India Supply Chain Management market is expected to grow, fueled by ongoing advancements in digitalization, enhanced logistics infrastructure, and rising demand for efficient supply chain solutions. The transition towards automated systems and AI-driven analytics will significantly impact the market, improving supply chain agility and scalability.

Market Opportunities

• Expanding E-commerce Sector: India's e-commerce sector is expected to drive the SCM market, with an estimated 500 million online shoppers projected by 2025. The increased demand for quick and reliable delivery solutions is encouraging supply chain companies to enhance their operations, especially in warehousing and last-mile delivery. Additionally, the growth in online shopping frequency drives the need for a robust and adaptive supply chain to handle high order volumes and maintain customer satisfaction.

• IoT Implementation in SCM: The Indian governments investment of approximately 30 billion INR in Internet of Things (IoT) technology within the logistics and supply chain sector enables real-time tracking and predictive maintenance. IoT applications support inventory tracking, fleet management, and asset tracking, providing companies with the capability to optimize routes and reduce operational downtimes.