The Centre for Digital Economy Policy Research (C-DEP), in collaboration with IIT Delhi, has released a report titled “Study of Technology-Enabled Intra-City Logistics for MSMEs”, highlighting how digital goods transportation services are significantly reducing logistics costs and improving efficiency for India’s MSMEs.
Released at India Habitat Centre by MP and CAIT Secretary General Shri Praveen Khandelwal and Swadeshi Jagran Manch Co-Convener Shri Ashwini Mahajan, the report finds that business users account for around 71% of users and nearly 97% of orders on tech-enabled intra-city logistics platforms. Among surveyed MSMEs, 73% reported lower transport costs, 95% saw improved on-time deliveries, and 27% expanded their customer reach.
The study warns that proposed GST changes under GST 2.0 could raise taxes on digitally booked local delivery services from 5% to 18%, potentially increasing per-trip costs by over 12% and impacting small businesses. The report recommends regulatory clarity under GST, support for gradual formalisation of transport operators, and targeted incentives to enable a smooth transition to electric freight vehicles without increasing costs for MSMEs.