India’s logistics costs are projected to decline sharply to 7–8 per cent of GDP by 2035 from the current 13–14 per cent, bringing the country closer to global benchmarks and significantly enhancing export competitiveness, according to a report released on Friday by Grant Thornton Bharat.
The report highlights strong investment momentum in the transportation and logistics sector, which recorded 48 deals in 2025—up 37 per cent from 2024. Private equity and venture capital investments reached $659 million during the year, with a major share flowing into tech-enabled, asset-light logistics models.
Grant Thornton Bharat noted that 2025 marked a phase of structural transformation for India’s logistics ecosystem, driven by policy reforms, faster infrastructure commissioning, and deeper digital integration. These developments are collectively steering the sector toward a more connected, efficient, and competitive framework.
The report forecasts a significant modal shift in freight transportation over the next decade. Road freight’s share is expected to decline from 72 per cent in 2014 to nearly 50 per cent by 2035, while rail’s share could rise to around 40 per cent, supported by the expansion of Dedicated Freight Corridors (DFCs).
“India’s transportation and logistics sector has undergone a phase of structural transformation in 2025, driven by policy reforms, accelerated infrastructure commissioning, and expanding digital integration,” said Bhavik Vora, Partner and Transportation & Logistics Industry Leader at Grant Thornton Bharat.
He added that increased investments in multimodal infrastructure and digital platforms are reshaping freight movement, while GST reforms have streamlined the logistics ecosystem and reinforced the shift toward integrated and efficient supply chains.
The report outlines a long-term vision of India emerging as a digitally synchronised, multimodal logistics hub, supported by 35 operational multimodal logistics parks (MMLPs), AI-driven scheduling systems, and stronger integration with Indo-Pacific trade corridors.
Recent GST changes have introduced a dual-rate structure for freight and multimodal transport, influencing cost planning, procurement strategies, and compliance priorities across the logistics value chain.
On the digital front, the Unified Logistics Interface Platform (ULIP) now integrates 125 APIs across 11 ministries, enabling real-time data exchange and reducing operational friction at key logistics nodes.
Meanwhile, five multimodal logistics parks—located in Chennai, Bengaluru, Nagpur, Indore and Jogighopa—are in advanced stages of development, further strengthening India’s push toward modal shift and logistics efficiency.
