India’s express logistics industry has emerged as a crucial enabler of economic growth, digital commerce, and employment generation, with the sector valued at nearly USD 9 billion in FY25. Driven by the rapid rise of e-commerce, MSME exports, and digital transformation, the sector has clocked a robust CAGR of 12–15% since FY17.
According to industry estimates, the sector contributes significantly to the economy, generating USD 1–1.5 billion in GST collections and USD 650 million in customs duties in FY24, while supporting 2.8–3 million jobs across urban and rural India.
The domestic express logistics segment, which accounts for 70% of the market, is valued at USD 6.3–6.5 billion, led by surface express services. Government initiatives such as Bharatmala Pariyojna, GST, E-way Bill, and FASTag have streamlined road logistics and enhanced inter-state efficiency. Meanwhile, the international express market, contributing 30% of the total, has grown on the back of cross-border e-commerce, MSME digitisation, and export demand.
The pandemic accelerated structural changes in the industry, with B2C and C2C segments now representing 55% of the market, overtaking the traditionally dominant B2B share. Quick commerce, hyperlocal delivery, and direct-to-consumer (D2C) brands are driving demand for faster deliveries, prompting logistics firms to invest in technology, automation, and urban hubs.
India’s booming retail e-commerce market, valued at USD 1,000 billion in FY25, has seen its online share rise from 3% in FY19 to 7% in FY25, pushing shipments from 1.1 billion to 5 billion annually. Express logistics accounts for nearly 60% of the B2C logistics segment, valued at USD 4–4.5 billion.
Experts highlight four defining trends shaping the sector – consolidation, agile business models, digital innovation, and sustainability. Policy frameworks such as the National Logistics Policy, PM Gati Shakti Master Plan, and upcoming E-commerce Policy are expected to accelerate growth.
Looking ahead, the industry is projected to reach USD 18–22 billion by FY30, while creating 6.5–7.5 million jobs. However, challenges including infrastructure gaps, customs delays, and urban freight management remain pressing.
“With continued policy support, innovation, and customer-centric strategies, India’s express logistics sector is poised to become a global leader and a key driver of the country’s Amrit Kaal aspirations,” industry experts said.
