Since long, third party logistics service providers are known to be supporting the agriculture, manufacturing and the retail industry with various supply chain activities. With the advent of new technologies in the field of technologies and with more organizations setting up the logistics operations, these organizations are now catering to their customers and challenging the competition by focusing on their core activities i.e., product research and development, production, sales and marketing. The activities that the 3PL organizations undertake are transportation, inventory management, product load and invoice reconciliation and scheduling. India spends about 6 to 7 percent higher on the logistics as compared to other developed countries. Hence there is an immense opportunity for bringing down the total GDP spends on logistics and for innovation and growth of the logistics services m India through qualitative enhancement of service quality and greater level of integration. As an increased no of organisations are showing interest in partnering with a sound and serious third parties for its support in logistics services the industry needs to gear up to counter the competition and challenges and get innovative to provide hassle free one stop solutions to the clients. The paper aims to discuss the 3PL industry in general and its state in India. Also the factors that will enable the future growth at a higher pace along with the issues that may deter the growing 3PL industry are discussed
