India Launches First Comprehensive Report on Logistics Costs

22 Sep 2025 CW Team

Shri Goyal highlighted multiple government initiatives aimed at making logistics more competitive and reducing the cost of doing business. These include mapping each Harmonized System of Nomenclature (HSN) code to the relevant ministry, creating a logistics data bank, implementing integrated state and city logistics plans under the SMILE programme with the Asian Development Bank (ADB), and infrastructure projects by NICDC and other agencies. He emphasised that reforms such as GST implementation and rationalisation further enhance efficiency, reduce costs, and strengthen India’s competitiveness.

Previously, logistics costs were often overestimated at 13–14 per cent of GDP based on external or partial data. The new assessment by NCAER for DPIIT estimates logistics costs at 7.97 per cent of total GDP, providing a more accurate and evidence-based measure. The report captures costs across transport modes, product categories, and firm sizes, while also presenting freight costs per tonne-kilometre and the benefits of multi-modal transport.

Estimates for the past five years indicate that logistics cost growth is slowing relative to non-services output, reflecting the impact of initiatives such as the PM GatiShakti National Master Plan, Dedicated Freight Corridors, Bharatmala Pariyojana, Sagarmala Project, Integrated Check Posts, ULIP, and the Logistics Efficiency Enhancement Programme (LEAP). This study provides critical insights to guide policy, improve efficiency, and position India as a global logistics hub.

On the occasion of a decade of Make in India, Union Minister for Commerce and Industry, Shri Piyush Goyal, today in New Delhi launched the Assessment of Logistics Cost in India report. For the first time, India has a scientifically derived estimate of logistics costs, using a hybrid methodology that combines secondary data with nationwide surveys. This initiative aligns with the National Logistics Policy (2022), which mandates a uniform framework for measuring logistics costs and benchmarking them globally.Shri Goyal highlighted multiple government initiatives aimed at making logistics more competitive and reducing the cost of doing business. These include mapping each Harmonized System of Nomenclature (HSN) code to the relevant ministry, creating a logistics data bank, implementing integrated state and city logistics plans under the SMILE programme with the Asian Development Bank (ADB), and infrastructure projects by NICDC and other agencies. He emphasised that reforms such as GST implementation and rationalisation further enhance efficiency, reduce costs, and strengthen India’s competitiveness.Previously, logistics costs were often overestimated at 13–14 per cent of GDP based on external or partial data. The new assessment by NCAER for DPIIT estimates logistics costs at 7.97 per cent of total GDP, providing a more accurate and evidence-based measure. The report captures costs across transport modes, product categories, and firm sizes, while also presenting freight costs per tonne-kilometre and the benefits of multi-modal transport.Estimates for the past five years indicate that logistics cost growth is slowing relative to non-services output, reflecting the impact of initiatives such as the PM GatiShakti National Master Plan, Dedicated Freight Corridors, Bharatmala Pariyojana, Sagarmala Project, Integrated Check Posts, ULIP, and the Logistics Efficiency Enhancement Programme (LEAP). This study provides critical insights to guide policy, improve efficiency, and position India as a global logistics hub.

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