📦 Logistics in India: Key Facts, Growth Trends & Challenges (2025 Overview)

Fresh SSB batches start around the 1st & 15th of every month.

🚀 1. Logistics Performance Index (LPI)

• India ranked 38th out of 139 countries in the 2023 World Bank LPI.
• Steady rise from 54 in 2014 and 44 in 2018.

💰 2. Logistics Costs & GDP Share

• Logistics costs: ~8% of India’s GDP (7.97% in 2023–24).
• Target: Reduce to ~9% or lower by Dec 2025.

📈 3. Market Size & Growth

• 2024 estimate: USD 317.26 billion.
• 2029 projection: USD 484.43 billion at ~8.8% CAGR.
• Long-term: Could reach ₹120 trillion (~USD 1.2 trillion) by 2035.

🧩 4. Contribution to GDP & Employment

• Contributes 13–14% to GDP.
• Employs 22+ million people, with more jobs expected.

🏗️ 5. Policy & Infrastructure Push

• Key initiatives: PM GatiShakti, National Logistics Policy (NLP), ULIP, Logistics Data Bank (LDB).
• Infra spending: ~2.1% of GDP (2021) → ~3.1% (2025) → ~5% (2030).

🏢 6. Warehousing & Industrial Demand

• Logistics real estate growing at 25%+ annually (2025).
• Major hubs: Chennai, Mumbai, Pune, NCR.

🌐 7. International Trade & Ports

• Shipment ranking: 44 (2018) → 22 (2023).
• Investments in port modernization, multimodal corridors, and freight-only rail lines.

⚠️ Challenges & Weak Points

• Sector remains unorganized and fragmented; formalization expected by 2035.
• Issues: last-mile delays, regulatory bottlenecks, poor remote connectivity.
• Road transport dominates but is costlier than rail/water; modal integration is complex.
• Infrastructure bottlenecks: port congestion, limited inland waterways, lack of intermodal facilities.