India’s logistics sector, valued at $215 billion in 2021, is poised for rapid expansion with a projected compound annual growth rate (CAGR) of 10.7% through 2026, according to official government data released on Saturday.
The sector’s recognition as “infrastructure” has enabled access to cheaper, long-term funding on par with roads and railways, further cementing its role in India’s economic growth story.
Government reforms, including the National Logistics Policy (NLP), PM GatiShakti, GST, and the creation of logistics parks, are modernising infrastructure, improving efficiency, and reducing costs.
“The sector employs over 22 million people and is creating millions of new jobs. Inland Waterways alone handled a record 145.5 million tonnes of cargo in 2024-25. Digital platforms such as ULIP are boosting transparency and efficiency across supply chains,” the data noted.
India, the world’s fourth-largest economy, has emerged as the fastest-growing major economy, recording 6.5% real GDP growth in 2024-25 at constant prices. Strong supply chains are viewed as central to building resilience and competitiveness in the years ahead.
Key Initiatives Powering Growth
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Creation of a logistics division (2017): Set up under the Department of Commerce to oversee integrated logistics development.
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National Logistics Policy (2022): Aims to cut costs and improve ease of doing business through digital reforms like ULIP and the Logistics Data Bank (LDB).
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PM GatiShakti Master Plan (2021): Integrates 57 ministries, all 36 states/UTs, and 1,700 data layers to unify infrastructure planning across modes of transport.
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Dedicated Freight Corridors (DFCs): The Eastern (1,337 km) and Western (1,506 km) corridors are nearing completion, with 96.4% of the total 2,843 km operational as of March 2025, expected to spur industrial growth and jobs.
Analysts say the combined thrust on infrastructure, technology, and policy support is transforming India into a key logistics hub in Asia, with stronger supply chains underpinning long-term economic resilience.
