The increase in international trade will have a huge impact on India's transportation and logistics market, which was valued at around US$14 billion in 2004, and is expected to grow at a compound annual growth rate of around 7%.

One of the major hurdles faced by India's logistics industry is inadequate infrastructure. The Indian government is making great efforts to improve trade by expanding port operations; investing in highway projects, and improving the rail network, and has announced plans to spend $17 billion in transport infrastructure by 2010. The Indian market is thus fairly and squarely in the spotlight for transportation and logistics companies, with many believing that India will eventually rival China in terms of opportunities.