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
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement