India’s logistics sector, valued at $215 billion in 2021, is set for rapid expansion with a projected compound annual growth rate (CAGR) of 10.7% through 2026, according to official government data. The sector’s designation as “infrastructure” has enabled access to long-term, low-cost funding on par with roads and railways, reinforcing its role as a driver of economic growth.
Reforms such as the National Logistics Policy (NLP), PM GatiShakti, the rollout of logistics parks, and GST have modernised infrastructure, streamlined processes, and reduced logistics costs. The sector employs more than 22 million people and continues to generate new jobs. Inland Waterways alone carried a record 145.5 million tonnes of cargo in FY 2024-25, while digital platforms like ULIP are boosting transparency and efficiency across supply chains.
India, now the world’s fourth-largest economy, grew at 6.5% in FY 2024-25 at constant prices, with efficient logistics networks seen as key to sustaining competitiveness and resilience.
Key Growth Drivers
- Creation of a logistics division (2017): Established under the Department of Commerce to coordinate integrated logistics development.
- National Logistics Policy (2022): Targets lower costs and better ease of doing business through digital reforms such as ULIP and the Logistics Data Bank (LDB).
- PM GatiShakti Master Plan (2021): Brings together 57 ministries, 36 states/UTs, and 1,700 data layers for unified, multimodal infrastructure planning.
- Dedicated Freight Corridors (DFCs): Nearly complete Eastern (1,337 km) and Western (1,506 km) corridors — with 96.4% of the 2,843 km already operational as of March 2025 — are expected to boost industrial activity and job creation.
Analysts say the combined push on infrastructure, technology, and policy support is positioning India as a rising logistics hub in Asia, with stronger supply chains underpinning long-term economic growth.
