The Indian logistics industry is on a remarkable growth trajectory, with an expected CAGR of 11%, projected to reach USD 468 billion by FY2027. Since 2014, budget allocations for road infrastructure have surged by 500%, leading to significant improvements and potential annual savings of up to INR 4.8 trillion in logistics costs.
Rail freight loading has also seen steady growth, reaching 1,591 million tonnes in FY2024, with dedicated freight corridors enhancing operational efficiency.
The Indian air cargo sector demonstrated resilience, recording a robust CAGR of 23% from FY2021 to FY2023, despite pandemic challenges.
Major ports handled 819 million metric tonnes of cargo traffic in FY2024, reflecting a 7% CAGR growth between FY2021 and FY2024.
The adoption of digital technologies like RFID, GPS, IoT, and AI is driving operational efficiency and cost reduction in the logistics sector. This sector is a major employment generator, currently providing livelihoods to over 22 million people, with a projection to add 10 million new jobs by 2027.
India’s ranking in the World Bank’s Global Logistics Performance Index improved to 38 in 2023, with a target to break into the top 25 by 2030. Policies like the E-way bill system, PM GatiShakti National Master Plan, and the National Logistics Policy are driving substantial transformations in the logistics landscape.
