Summary:

According to Motilal Oswal, the Indian logistics industry was valued at US$ 107.16 billion (Rs. 9 trillion) in FY23 and is predicted to rise considerably to US$ 159.54 billion (Rs. 13.4 trillion) by FY28, with a CAGR of 8-9%. This increase is driven by structural changes, technological improvements, and government programs targeted at lowering logistics costs and improving infrastructure. The National Logistics Policy, introduced in September 2022, aims to enhance logistics by increasing rail freight's share, which currently stands at 18%.

As of April 2024, Dedicated Freight Corridors (DFCs) are 96% complete, with the potential to increase rail freight capacity and efficiency. The government's port privatization initiatives have enhanced infrastructure for major operators such as Adani Ports and JSW Infrastructure. Logistics expenditures in India account for 14% of GDP, higher than in developed nations (8-9%), primarily due to road transport, which accounts for 71% of freight movement. Initiatives such as GST and significant investments aim to reduce costs to align with global standards. The express logistics market is forecast to grow at a 14% CAGR between FY23 and FY28, while the less-than-truckload segment is expected to grow at a 10% CAGR.

Source: IBEF 

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