Logistics sector in India to touch $468 billion by 2027

According to the report, roads account for more than 60% share of logistics transportation; there has been a 500% increase in the road transport and highway budget allocation since 2014. With a 500% increase in budget allocation since 2014, road infrastructure has seen remarkable improvements, potentially saving up to Rs. 4.8 trillion annually in logistics costs. Railway freight loading grew at 5% CAGR from FY2018 to FY2024 and stood at 1,591 million tonnes (159.1 crore tonnes) in FY2024. Rail freight loading has grown steadily, reaching 1,591 million tonnes in FY2024, with dedicated freight corridors enhancing operational efficiency. The report states that the low share of infrastructure spending as a percentage of GDP (3.2%) and the high logistic expenditure (13% to 14% of the GDP) are the two major challenges for the logistics industry in India.