India’s logistics sector is set to reach a valuation of $800 billion by 2030, contributing 11 per cent of the country’s GDP, according to a report by India Narrative.
The study highlights that a 1 per cent reduction in logistics cost could save the economy $15 billion annually, underscoring the importance of efficiency. Growth will be driven by government initiatives, technology adoption, skilled workforce development, and infrastructure upgrades.
Flagship programmes such as the National Logistics Policy (NLP) and PM GatiShakti Master Plan are reshaping the industry. NLP has streamlined the system with technology platforms like the Unified Logistics Interface Platform (ULIP) and Logistics Data Bank (LDB) for real-time supply chain tracking. GatiShakti, linking 57 ministries and all states/UTs through 1,700 data layers, has accelerated project approvals and multimodal transport planning.
Further, the Maritime Development Fund worth ₹25,000 crore is modernising ports, while Bharat Trade Net (BTN) is centralising trade documentation and digital finance in line with global practices. Since the rollout of GST in 2017, transit times have dropped by 33 per cent with the elimination of interstate checkpoints.
The sector currently employs 22 million people across transportation, storage, cold chain, and last-mile delivery, with an additional 10 million jobs expected by 2027. Logistics parks, multimodal transport corridors, and digital platforms are also helping SMEs and large enterprises expand into global markets.
At present, logistics account for 13–14 per cent of India’s GDP, significantly higher than the global average of 8–9 per cent. As the sector becomes more structured, efficient, and competitive, experts believe it will play a key role in steering India toward its $5 trillion economy target by 2027.