India’s logistics sector is poised for a nearly threefold expansion, expected to reach ₹120 trillion by 2035, driven by robust infrastructure investments, policy reforms, and rapid formalisation, according to a new report by Omniscience Capital.
The report projects India’s GDP to grow from $4.2 trillion in 2025 to $10 trillion by 2035, with industry and agriculture contributing $4 trillion to this growth. With logistics costs accounting for nearly 30% of India’s agri-industry GDP, the logistics market is projected to hit $1.2 trillion—or around ₹120 trillion—by the end of the decade.
Ashwini Shami, President and Chief Portfolio Manager at Omniscience Capital, said the sector is on the brink of a “multi-decade boom” due to record public spending and transformational reforms.
“Government initiatives such as the National Infrastructure Pipeline, PM Gati Shakti, and the National Logistics Policy directly address inefficiencies in the logistics ecosystem,” Shami noted.
The report highlighted a significant increase in government infrastructure spending, from 2.1% of GDP in 2021 to 3.1% in 2025, with expectations to reach 5% by 2030. Major investments in roads, railways, dedicated freight corridors, and the India-Middle East-Europe Economic Corridor (IMEEC) are expected to reduce logistics costs, improve transit times, and bolster India’s global trade positioning.
Additionally, digitisation initiatives such as the Unified Logistics Interface Platform (ULIP), e-way bills, and RFID-enabled tracking have enhanced efficiency across the value chain.
Policies like GST 2.0 and the National Logistics Policy are also expected to accelerate the formalisation of the sector, bringing the unorganised portion down from 80% to about 40% by 2035.
The report emphasises that initiatives under ‘Make in India’ and Production-Linked Incentive (PLI) schemes will further fuel the logistics sector by driving manufacturing output and demand for efficient supply chain systems.
