India’s logistics sector has achieved a significant milestone, with logistics costs reduced to 7.97% of GDP, according to the latest government update—signalling the tangible impact of sustained reforms, integrated planning and coordinated infrastructure development.
The reduction brings India closer to global benchmarks and underscores a structural transformation of the country’s logistics ecosystem, long seen as a cost and efficiency bottleneck for trade and manufacturing. Government officials said the progress reflects the convergence of policy reforms, multimodal infrastructure expansion and digital integration across supply chains.
At the core of this transformation is the PM Gati Shakti National Master Plan, which integrates railways, highways, ports and airports into a single digital and planning framework. By breaking traditional silos between ministries and transport modes, Gati Shakti is enabling seamless multimodal connectivity, reducing transit times and logistics inefficiencies.
The initiative is playing a critical role in strengthening industrial competitiveness and supporting flagship programmes such as Ease of Doing Business and Make in India, while also promoting more balanced regional development by improving connectivity to hinterland and remote regions.
A key pillar of the programme is the development of Gati Shakti Cargo Terminals (GCTs), which are designed to modernise freight handling, improve last-mile connectivity and encourage private sector participation in logistics infrastructure. These terminals are expected to enhance cargo aggregation, reduce dependence on road-only transport and support modal shift towards rail.
Officials noted that continued expansion of multimodal infrastructure, digitisation of logistics processes and coordinated planning under Gati Shakti will be crucial in sustaining the momentum and further lowering logistics costs. As these reforms mature, India is positioning itself as a more efficient, competitive and future-ready logistics and trade hub on the global stage.
