India's Logistics Sector Poised for Growth with Infrastructure Boost

Significant Growth in India's Logistics Sector

New Delhi, Aug 16: India's logistics industry, which was valued at $215 billion in 2021, is set for robust expansion, with projections indicating a compound annual growth rate (CAGR) of 10.7% through 2026, according to government statistics released on Saturday.

The government's move to classify logistics as an infrastructure sector has opened avenues for more affordable, long-term financing, akin to what is available for roads and railways, thereby reinforcing its crucial role in India's economic narrative.

Initiatives such as the National Logistics Policy (NLP), PM GatiShakti, GST, and the establishment of Logistics Parks are modernizing the infrastructure and reducing operational costs.

"The logistics sector currently employs over 22 million individuals and is generating millions of new job opportunities. Inland Waterways achieved a record cargo volume of 145.5 million tonnes for the fiscal year 2024–25. The integration of digital technologies and platforms like ULIP is enhancing efficiency and transparency throughout supply chains," the official data states.

India ranks as the fourth-largest economy globally. Various sectors, including services, manufacturing, and agriculture, have driven India's robust recovery post-pandemic in 2021 and 2022, resulting in a cumulative growth of 15.3% over these two years.

India has consistently held its position as the fastest-growing major economy worldwide, with a real GDP growth rate of 6.5% (at constant prices) projected for the year 2024-2025.

Enhanced supply chains today promise a more resilient India tomorrow. The government's emphasis on infrastructure development and digital transformation has further propelled growth, positioning India as a pivotal logistics hub in Asia.

In July 2017, a dedicated logistics unit was established under the Department of Commerce to facilitate the Integrated Development of the Logistics Sector.

The National Logistics Policy (NLP) was introduced in September 2022 to foster a more efficient logistics ecosystem by enhancing operational efficiency and lowering logistics expenses. Digital initiatives such as the Unified Logistics Interface Platform (ULIP) and the Logistics Data Bank (LDB) are now fully functional, aimed at improving the business environment and enabling the tracking of containerized Export Import (EXIM) cargo.

The PM GatiShakti Master Plan, launched in October 2021, aims to unify various transport modes into a cohesive network. This initiative has brought together 57 Central Ministries/Departments along with all 36 states and union territories, integrating a vast array of 1,700 data layers to create a comprehensive platform for infrastructure planning.

The Ministry of Railways is currently working on two Dedicated Freight Corridors (DFCs): the Eastern Dedicated Freight Corridor (EDFC) stretching from Ludhiana to Sonnagar (1,337 km) and the Western Dedicated Freight Corridor (WDFC) from Jawaharlal Nehru Port Terminal (JNPT) to Dadri (1,506 km).

As of March 2025, 2,741 Route Kilometers (96.4%) of the total 2,843 km are operational. These corridors are anticipated to boost industrial growth and generate substantial employment opportunities in logistics and related fields.