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India's Logistics Sector Set to Hit $362 Billion by 2030, Growing at 8% Annually

India's logistics sector is projected to grow at an 8% annual rate to reach $362 billion by the financial year 2030, up from $246 billion in FY25. This growth is fueled by rising consumption, expanding trade, and efficiency gains from government schemes like PM Gati Shakti. Freight volume is expected to exceed 7,100 million tonnes by FY30, with manufacturing, e-commerce, and retail as key drivers. West India leads regional growth with a 35% market share, supported by major ports and industrial hubs in Gujarat and Mumbai.

Key Points: India Logistics to Reach $362B by FY30, 8% Annual Growth

  • Sector to grow at 8% CAGR to $362B by FY30
  • Express logistics segment growing at 14%
  • West India leads with 35% market share
  • Logistics cost at 8% of GDP, lower than China
2 min read

India's logistics sector likely to grow 8 pc annually to $362 billion by FY30

India's logistics sector projected to grow to $362 billion by FY30, driven by manufacturing, e-commerce, and government initiatives like PM Gati Shakti.

"Manufacturing, construction, e-commerce, and retail are the major drivers of this growth - Manu Sehgal, Brickwork Ratings"

New Delhi, April 17

India's logistics sector is projected to touch $362 billion by FY30 from $246 billion in FY25, growing at a CAGR of 8 per cent over rising consumption, expanding trade, as well as cost optimisation and efficiency gains from key government schemes, a report said on Friday.

The report from Brickwork Ratings projected freight volume to exceed 7,100 million tonnes by FY30 from roughly 5,000 tonnes in FY24, at a CAGR of 6.1 per cent.

"Manufacturing, construction, e-commerce, and retail are the major drivers of this growth in terms of freight volume. Specifically, the express logistics segment is projected to grow by 14 per cent, making it a key catalyst for the industry," said Manu Sehgal, CEO, Brickwork Ratings.

Manufacturing led the end-use segments among logistic sectors with 18 per cent market share in FY25, driven by strong industrial production, auto or pharma advancements, and export demand.

Meanwhile, warehousing and supply chain services are the fastest-growing value chain layer, supported by increasing investments and GST-led formalisation of the organised market.

West India led the growth with 35 per cent share, driven by Mumbai's financial prominence, major ports, strong industrial base in Gujarat, industrial hubs and corridors.

North India followed with around 30 per cent, benefiting from strategic transit positioning, robust infrastructure, and key hubs like Delhi-NCR.

South India accounted for approximately 25 per cent, supported by port infrastructure, IT-driven cities, and manufacturing activity.

East India posted a 10 per cent share, but the share is sharply growing, aided by port-led trade, improving connectivity, and its strategic gateway position to the Northeast and neighbouring countries.

India's logistics cost of 8 per cent of GDP is comparable to South Korea (8 per cent), USA (8 per cent), and Europe (9 per cent) far lower than China's logistics cost estimated at roughly 14 per cent in 2023.

Initiatives such as Dedicated Freight Corridors and PM Gati Shakti are aimed at reducing logistics costs further. India's logistics ecosystem is dominated by road transport, accounting for 65 per cent market share, while rail currently handles 31 per cent of freight.

- IANS

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Reader Comments

P
Priya S
Great to see the numbers, but I hope this growth is inclusive. The report says West and North India dominate. We need to ensure East India's share grows faster. Better connectivity in the Northeast and eastern states will balance regional development and create jobs there.
R
Rohit P
As someone in the e-commerce business in Tier-2 city, I can vouch for the express logistics boom! Delivery times have improved drastically. The 14% growth projection for express logistics sounds accurate. More players are entering the market, which is good for consumers.
M
Michael C
Interesting data point about logistics cost being 8% of GDP, lower than China's 14%. That's a significant competitive advantage for India as a manufacturing destination. If the Dedicated Freight Corridors can shift more freight to rail from road, efficiency will improve even more.
S
Shreya B
The growth is impressive, but let's not forget the ground reality. Last-mile connectivity in many rural and semi-urban areas is still a challenge. Warehouses are growing, but are they equipped with proper automation and tech? We need quality growth, not just volume.
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Vikram M
Gujarat and Maharashtra leading from the front as usual! The industrial corridors are game-changers. Hope the new government continues the infrastructure push. This sector creates so many direct and indirect jobs - from truck drivers to warehouse managers to software engineers for logistics tech.

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