India currently stands as the world’s fourth-largest economy, maintaining its status as the world’s fastest-growing major economy with a real GDP growth rate of 6.5% in the year 2024-2025. The logistics sector is a critical pillar supporting this growth, contributing approximately 13%–14% to India’s GDP. The sector, which was valued at USD 215 billion in 2021, is well-positioned for strong expansion with an expected Compound Annual Growth Rate (CAGR) of 10.7% until 2026.
As Prime Minister Narendra Modi noted, strengthening the logistics sector will not only enhance the life of the common person but also help increase respect for labor and workers. The sector currently employs over 22 million people and is projected to add 1 crore jobs by 2027.
Policy and Infrastructure Modernization
The government has formally granted the logistics sector infrastructure status, enabling access to cheaper, long-term funding similar to roads and railways. The focus on integrated development began in July 2017 with the creation of a separate logistics unit under the Department of Commerce.
Key initiatives driving this transformation include:
1. PM GatiShakti Master Plan: Launched in October 2021, this plan integrates different modes of transport into a coordinated network to achieve faster, seamless, and ambitious infrastructure development. The GatiShakti National Master Plan (NMP) integrates 57 Central Ministries/Departments and all 36 states and union territories, utilizing 1,700 data layers for unified planning.
2. National Logistics Policy (NLP): Launched in September 2022, the NLP aims to create a more seamless logistics ecosystem by improving efficiency and reducing overall logistics costs.
3. Dedicated Freight Corridors (DFCs): The Ministry of Railways is developing the Eastern DFC (Ludhiana to Sonnagar, 1337 Km) and the Western DFC (Jawaharlal Nehru Port Terminal (JNPT) to Dadri, 1506 Km). These corridors are designed to carry heavy freight traffic, easing congestion on existing passenger routes, lowering transportation costs, and improving energy efficiency. As of March 2025, 2,741 route kilometers (96.4%) of the total 2,843 Km are operational.
4. Multi-Modal Logistics Parks (MMLPs): Under the Bharatmala Pariyojana, 35 key locations (including Chennai, Bengaluru, Nagpur, and Indore) have been approved for MMLP development. These parks serve as hubs with large-scale warehousing and storage facilities designed to boost efficiency and reduce logistics costs.
5. Inland Waterways: Inland Waterways reported a record cargo movement of 145.5 million tonnes for 2024–25, highlighting the increasing investment and robust policies in this area. The number of operational national waterways has increased from 24 to 29.
6. Maritime Amrit Kaal Vision 2047: This long-term roadmap focuses on blue economy principles, including expanding port capacity, enhancing operational efficiency through digitization, and promoting green initiatives. The Global Maritime India Summit (GMIS) 2023 saw commitments of over ₹10 lakh crore in investments.
Digitalization and Efficiency Reforms
Digitalization is boosting efficiency and transparency across supply chains. Major digital platforms and reforms include:
• Unified Logistics Interface Platform (ULIP): This digital platform aggregates data from various logistics-related ministries and departments on a single interface. ULIP successfully recorded 100 crore API transactions in March 2025, demonstrating its technological strength and India’s dedication to building a competitive logistics network. ULIP helps manufacturers manage inventories and reduce costs by enabling shipment Estimated Times of Arrival (ETAs).
• Logistics Data Bank (LDB): LDB enhances transparency and real-time visibility by tracking containerized Export Import (EXIM) cargo. As of October 2024, it has successfully traced the movement of more than 75 million EXIM containers.
• Goods and Services Tax (GST) and E-Way Bill: The implementation of GST in 2017 streamlined goods movement by eliminating interstate checkpoints and simplifying tax structures. Studies suggest GST has improved transport time by over 33%. The e-Way Bill, a mandatory digital document for transporting goods worth over ₹50,000 between states, further enhances transparency and compliance.
Global Competitiveness and Future Goals
India’s reform efforts have translated into tangible improvements in global rankings. The World Bank’s Logistics Performance Index (LPI) reported India climbing six places, from 44th in 2018 to 38th out of 139 nations in 2023.
India aspires to be among the world’s top 25 logistics performers by 2030, aiming to bring logistics costs below 10% of GDP. Furthermore, the creation of the Gati Shakti Vishwavidyalaya (GSV), India’s first dedicated university for transport and logistics education, plays a key role in preparing the skilled professionals necessary to support this national goal.
Embracing Sustainability
The sector is embracing a shift toward green logistics through infrastructure investments and government programs. Key sustainability efforts include:
• Freight Greenhouse Gas (GHG) Calculator: Developed to calculate and compare transportation costs and GHG emissions, supporting sustainable development.
• Rail Green Points: Launched by Indian Railways for freight customers, allowing them to visualize potential carbon emission savings.
• Modal Shift: The government aims to increase the railway’s freight share from 35–36% to 45% by 2030 due to the environmental benefits of rail transport.
• Digital platforms like ULIP are supporting sustainability goals by enabling companies, such as Century Plywoods and TCIL, to select greener transportation modes.
A strong, technology-driven logistics network is fundamental to helping India achieve its goal of becoming a USD 5 trillion economy by 2027 and realizing the vision of Viksit Bharat 2047.