India Launches First Comprehensive Report on Logistics Costs
WAREHOUSING & LOGISTICS

India Launches First Comprehensive Report on Logistics Costs

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. 

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. 

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code