Bridging the Skills Gap in India’s Booming Logistics Sector

India’s logistics and transportation industry is on the road to becoming a $380 billion powerhouse by 2025, but this rapid growth story carries with it a major concern: a widening skills gap. While the sector races ahead with automation, digitisation, and new-age platforms, the workforce—especially at the grassroots—struggles to keep pace with these transformations. The real question, then, is no longer whether the sector will grow, but whether there is enough skilled talent to sustain and support that growth in the long run.

With over 22 million people employed (reported by the Economic Survey), logistics is one of the country’s largest job creators. Yet a significant portion of this massive workforce still lacks formal training. This creates a worrying imbalance. Can the same people who have traditionally powered India’s logistics sector now lead the transition to smarter, technology-enabled operations, automated warehouses, and digital fleet management? Success in these areas requires proficiency in using mobile apps and digital platforms, familiarity with e-way bills and GST compliance, understanding RFID tolling, and adopting eco-driving techniques and safety protocols. Without these foundational skills, both efficiency and safety suffer, creating roadblocks to productivity.

The Government of India has acknowledged this challenge and emphasises the need to build strong industry-academia linkages. Its vision is to create a skilling ecosystem tailored to India’s unique needs, where the focus is not just on distributing certificates but on developing practical expertise. Training must be aligned to the dynamic demands of both the logistics industry and the self-employment sector. In short, skilling should move beyond formality and focus on developing professionals capable of excelling in a fast-changing, tech-driven environment.

This raises a critical question: how can India build a digitally proficient logistics workforce that can navigate a technology-centric job market? Addressing this challenge requires joint effort, and organisations such as FICCI’s Logistics & Supply Chain Committee and the All India Transporters Welfare Association (AITWA) have begun leading the charge. They have identified several key areas where skills gaps are most evident, ranging from fleet operations to warehouse management, compliance, and customer-facing roles. Many drivers and dispatchers still rely on manual scheduling and tracking, leading to inefficiencies in fuel use and route planning. In warehouses, barcode systems, IoT-enabled sensors, and WMS platforms remain underutilised because workers lack digital literacy. Compliance poses another hurdle, as the shift to e-invoicing, e-way bills, and digital documentation requires trained professionals who are still in short supply. Finally, with the rise of e-commerce, logistics has become more customer-facing than ever, but many workers lack the communication and CRM skills needed for efficient customer service and reverse logistics.

To bridge these gaps, FICCI has introduced several initiatives. These include skill development councils that design training programs aligned with the National Skill Qualification Framework, partnerships with universities to introduce logistics diplomas, and corporate workshops for supervisors and mid-level managers. One of its flagship efforts, the “Skill India in Logistics” program, launched in collaboration with the Ministry of Skill Development & Entrepreneurship, aims to train over 200,000 professionals by 2026. Meanwhile, AITWA has been working at the grassroots with truckers, fleet operators, and small logistics firms. Its driver skill enhancement programs focus on road safety, eco-driving, and vehicle diagnostics. Workshops introduce drivers and operators to digital payment systems, FASTag, GPS devices, and compliance documentation. Additionally, the association promotes second-generation entrepreneurs through mentorship programs, business literacy initiatives, and collaboration with state governments. Its partnership in Haryana and Maharashtra has already trained over 12,000 workers, leading to improved safety records, better compliance, and greater job satisfaction.

The impact of these initiatives is visible on the ground. A Nagpur-based logistics operator, for instance, saw remarkable improvements after attending an AITWA-led training program on GPS tracking and route optimisation. Within four months, the company achieved a 28 per cent rise in delivery accuracy and a 15 per cent drop in fuel costs. Its workforce, once hesitant to embrace technology, now actively uses route-planning apps, driver scorecards, and real-time alerts. Success stories like these underscore how targeted training can transform not only efficiency but also employee attitudes toward technology adoption.

However, creating a future-ready workforce requires more than isolated programs. The sector must embrace a holistic and collaborative approach involving policymakers, industry leaders, and educational institutions. Policy support for vocational education in logistics, funding models that enable continuous skill upgrades, and large-scale awareness campaigns showcasing career opportunities are all necessary to build a sustainable skilling ecosystem. But beyond these systemic measures, companies themselves must also act decisively to attract and nurture talent.

Attracting young professionals into logistics remains a challenge, partly because the sector is often seen as traditional or labour-intensive. To change this perception, companies need to invest in employer branding, highlighting the industry’s innovative side, its role in global trade, and its sustainability initiatives. Offering competitive benefits and flexible work arrangements can also make logistics more appealing to the next generation. Partnerships with universities, vocational institutions, and training academies are vital, as they create pipelines of future-ready talent through internships, apprenticeships, and specialised programs aligned with industry needs.

Yet, talent acquisition is only the beginning. In a rapidly evolving industry, continuous learning and development are indispensable. Companies must ensure that employees have regular opportunities to expand their capabilities, whether through formal training programs, cross-functional exposure, or mentorship. Digital tools, data analytics, and AI-driven supply chain management are becoming fundamental skills. At the same time, leadership development programs are crucial to prepare future managers who can drive innovation and navigate disruption. By embedding learning and development into the organisational culture, companies can transform workforce training from a one-time exercise into an ongoing process.

Retention is another pressing issue. Attracting and developing talent serves little purpose if high turnover persists, and logistics is notorious for attrition due to long hours, high pressure, and limited career progression. To address this, companies must prioritise work culture. Employees need to feel valued, supported, and able to see a clear career path within the organisation. Competitive pay and benefits are important, but equally vital are recognition programs, wellness initiatives, transparent communication, and visible opportunities for advancement. When employees are able to visualise long-term growth within a company, they are more motivated to stay and contribute.

Ultimately, India’s logistics sector can only thrive if it invests in people as much as it invests in technology. Building a digitally proficient, motivated, and future-ready workforce will require a combination of government policy, industry initiatives, and company-level commitment. By attracting the right talent, ensuring continuous upskilling, and retaining top performers through supportive workplace practices, logistics organisations can build a workforce that is agile, innovative, and capable of adapting to constant change. In an industry where volatility is inevitable, a skilled and adaptable workforce will remain the most enduring competitive advantage.