What India’s next logistics workforce looks like, through a CHRO’s lens

India’s logistics workforce did not merely expand in 2025 — it reorganised itself. Across fulfilment centres, last-mile networks and regional warehouses, the year marked a decisive shift in where work happens, who does it, and how companies engage talent at scale.

At the centre of this transformation is the rapid rise of quick commerce, which has forced supply chains to compress distance and time simultaneously. “With the rapid rise of quick commerce in India, the supply chain and logistics ecosystem is undergoing a significant transformation,” said Salil Chinchore, Chief Human Resources Officer at ElasticRun.

The change is visible not just in metros, but increasingly beyond them. “Businesses are increasingly positioning inventory closer to consumers to enable faster fulfilment and meet rising delivery expectations,” Chinchore said. As a result, fulfilment networks are spreading deeper into Tier-II and Tier-III cities. “As quick commerce expands beyond metros into Tier-II and Tier-III markets, demand for logistics professionals, warehouse operators, and gig workers has surged,” he noted.

Yet the geography of demand has also exposed imbalance. In India’s largest cities, Chinchore said, “demand for gig talent continues to far outpace available supply,” underscoring the strain on existing labour models.

From informal scale to formal structure

As fulfilment networks have scaled, so too have questions around how gig and platform workers are engaged. The labour-code reforms of 2025, Chinchore argued, represent an inflection point for the sector. “The new labour codes rightly emphasise the formalisation of employment within the informal sector,” he said. “They introduce clear provisions to regulate the engagement and benefits of gig and platform workers, addressing a long-standing gap in the ecosystem.”

For logistics companies, the shift is not cost-neutral. “While this may lead to a one-time increase in costs, it is a necessary step that will ultimately strengthen the fulfilment ecosystem by helping attract, retain, and responsibly engage gig talent,” Chinchore said.

The implication for 2026 is clear: access to labour alone will no longer be enough. Sustainable engagement, compliance and retention will increasingly define competitive advantage in logistics-heavy businesses.

Flexibility, with sharper accountability

Beyond formalisation, the labour codes also alter the operating mechanics of logistics companies, many of which function across multiple states and regulatory regimes. Chinchore pointed to the operational headroom the reforms create. “The provisions enable greater operational ease through measures such as a single nationwide registration for employers, a unified licence for contractors, increased overtime limits, permission for women to work night shifts, a higher threshold for contract workers under labour licences, and the formal recognition of fixed-term, gig, and platform workers,” he said.

Taken together, he added, “these changes allow logistics companies to operate with greater flexibility and efficiency at scale”.

That flexibility, however, comes with higher expectations from regulators and employees alike. “At the same time, the labour codes place a stronger onus on employers to ensure compliance across wages, workplace safety and health, employee benefits for fixed-term and gig workers, and robust grievance redressal mechanisms,” Chinchore said.

For HR leaders, this means less room for reactive fixes. “Logistics companies will need to proactively review and update their HR policies and practices to align fully with the new regulatory framework,” he said.

AI moves from pilot to practice

Alongside regulation, technology is quietly reshaping how people processes operate inside logistics organisations. Chinchore sees artificial intelligence becoming embedded across HR functions. “AI has the potential to significantly enhance both employee experience and productivity across multiple HR functions,” he said, including “interviewing and selection, skill-based virtual training, grievance management, employee query resolution, and performance management”.

Crucially, the shift is not confined to technical teams. “As organisations invest in building AI capabilities, the focus is increasingly on upskilling leaders and employees to work effectively with these tools,” Chinchore said.

At ElasticRun, the approach is deliberately decentralised. “Rather than relying solely on a small group of AI specialists, ElasticRun is building a cohort of AI champions across the organisation by empowering employees to use AI tools in their day-to-day work to identify challenges and solve problems independently.”

The model reflects a broader trend shaping talent needs for 2026: digital capability is no longer a specialised skill, but a baseline expectation across roles.

Wellbeing becomes a strategic question

As logistics work intensifies — physically and cognitively — employee wellbeing has become more visible and more formalised. “Organisations today are far more conscious of their responsibility toward employee wellbeing, with many formally reporting these efforts in their ESG disclosures and annual reports,” Chinchore said.

He described two broad approaches. “The first includes proactive interventions aimed at helping employees stay healthy and engaged such as preventive health check-ups, awareness programmes, fitness benefits, and wellness initiatives,” he said. “The second category focuses on remedial support, including health insurance coverage, counselling services, and structured return-to-work plans following illness.”

What matters, he stressed, is precision rather than scale. “The mix and scale of these interventions typically depend on the demographic profile and specific needs of the workforce, requiring companies to adopt a thoughtful and tailored approach.”

The shape of talent in 2026

By the end of 2025, India’s logistics workforce had begun to look fundamentally different: more geographically distributed, more digitally enabled, and more tightly regulated. Talent pools are expanding beyond metros, employment models are becoming more formal, and HR functions are being asked to balance flexibility with compliance.

As companies plan for 2026, the challenge will be to design workforce strategies that can absorb growth without losing resilience. The emerging talent pools are not just new sources of labour — they are a test of how India’s logistics economy adapts its people practices to support the next phase of scale.