India’s Logistics Sector Set to Touch $800 Billion by 2030

New Delhi, Aug 19 (KNN) India’s logistics sector is on track to reach a valuation of USD 800 billion by 2030, contributing nearly 11 per cent to the country’s GDP, according to a new report by India Narrative.

The growth is expected to be fuelled by government reforms, technology adoption, infrastructure upgrades, and workforce expansion.

The report highlighted that a 1 per cent reduction in logistics costs could save the Indian economy up to USD 15 billion annually.

Strategic investments, digital infrastructure, green policies, and skill development will continue to play a crucial role in sustaining this momentum.

With modernised supply chains, the sector is also positioned to accelerate India’s journey toward a USD 5 trillion economy by 2027.

Government initiatives such as the National Logistics Policy (NLP) and PM GatiShakti are significantly shaping the sector.

The NLP introduced digital solutions like the Unified Logistics Interface Platform (ULIP) and the Logistics Data Bank (LDB), enabling real-time tracking and greater efficiency.

Meanwhile, the PM GatiShakti Master Plan integrated 57 ministries and states/UTs through 1,700 data layers, improving infrastructure planning, multimodal transport connectivity, and faster project approvals.

Additional reforms include port modernisation under the Rs 25,000 crore Maritime Development Fund, and the launch of Bharat Trade Net (BTN), which centralises trade documentation, digital finance, and cross-border transactions.

The introduction of GST has also reduced interstate delays by eliminating checkpoints, cutting average transit times by 33 per cent since 2017.

The sector currently employs over 22 million people in transport, storage, cold chains, and last-mile delivery, with an additional 10 million jobs expected by 2027.

Logistics parks, multimodal corridors, and digital platforms are further enabling SMEs and large companies to expand globally.

At present, logistics account for 13–14 per cent of India’s GDP, compared to the global average of 8–9 per cent, underscoring the scope for efficiency gains.

(KNN Bureau)