Indian logistics market to reach Rs 13.4 trillion by FY28
WAREHOUSING & LOGISTICS

Indian logistics market to reach Rs 13.4 trillion by FY28

The Indian logistics market, which was valued at Rs 9 trillion in FY23, is anticipated to expand significantly, reaching Rs 13.4 trillion by FY28, reflecting a compounded annual growth rate (CAGR) of 8-9%, according to a recent report by Motilal Oswal.

This growth is driven by structural shifts, technological advancements, and government initiatives aimed at lowering logistics costs and enhancing infrastructure. The National Logistics Policy, launched in September 2022, aims to optimize India's logistics framework, focusing on increasing the railways' share in freight movement—currently at 18%—through the development of dedicated freight corridors (DFCs), enhancing road infrastructure, and expanding inland waterways.

As of April 2024, the commissioning of DFCs is 96% complete and is expected to enhance the capacity and efficiency of rail freight, boosting its share in the overall logistics mix. Additionally, the government's push for port privatization has improved infrastructure and efficiency at Indian ports, benefiting major operators like Adani Ports and SEZ (APSEZ) and JSW Infrastructure.

Currently, India's logistics costs account for 14% of its GDP, significantly higher than the 8-9% range seen in developed countries. The skewed modal mix, with road transport making up 71% of freight movement, contributes to these elevated costs, while railways and waterways hold a smaller share.

To address these inefficiencies, the government has implemented key initiatives such as the Goods and Services Tax (GST) and has heavily invested in road infrastructure, inland waterways, and DFCs. These measures aim to reduce the logistics cost-to-GDP ratio to 8-9% in the coming years, aligning India with global standards.

The logistics sector is highly diverse, encompassing road transport, rail transport, air cargo, multimodal logistics, and industrial warehousing. The domestic express logistics segment is projected to grow even faster, with a 14% CAGR over FY23-28, driven largely by the expansion of e-commerce.

Organized players, who currently hold around 80% of the market, are expected to strengthen their dominance, leveraging government policies like the e-way bill and GST. Furthermore, the less-than-truckload (LTL) segment in road transportation is also anticipated to grow, with a projected 10% CAGR, driven by rising demand for smaller and more frequent shipments that bypass warehouse storage to reach retailers directly.

(ET)

The Indian logistics market, which was valued at Rs 9 trillion in FY23, is anticipated to expand significantly, reaching Rs 13.4 trillion by FY28, reflecting a compounded annual growth rate (CAGR) of 8-9%, according to a recent report by Motilal Oswal. This growth is driven by structural shifts, technological advancements, and government initiatives aimed at lowering logistics costs and enhancing infrastructure. The National Logistics Policy, launched in September 2022, aims to optimize India's logistics framework, focusing on increasing the railways' share in freight movement—currently at 18%—through the development of dedicated freight corridors (DFCs), enhancing road infrastructure, and expanding inland waterways. As of April 2024, the commissioning of DFCs is 96% complete and is expected to enhance the capacity and efficiency of rail freight, boosting its share in the overall logistics mix. Additionally, the government's push for port privatization has improved infrastructure and efficiency at Indian ports, benefiting major operators like Adani Ports and SEZ (APSEZ) and JSW Infrastructure. Currently, India's logistics costs account for 14% of its GDP, significantly higher than the 8-9% range seen in developed countries. The skewed modal mix, with road transport making up 71% of freight movement, contributes to these elevated costs, while railways and waterways hold a smaller share. To address these inefficiencies, the government has implemented key initiatives such as the Goods and Services Tax (GST) and has heavily invested in road infrastructure, inland waterways, and DFCs. These measures aim to reduce the logistics cost-to-GDP ratio to 8-9% in the coming years, aligning India with global standards. The logistics sector is highly diverse, encompassing road transport, rail transport, air cargo, multimodal logistics, and industrial warehousing. The domestic express logistics segment is projected to grow even faster, with a 14% CAGR over FY23-28, driven largely by the expansion of e-commerce. Organized players, who currently hold around 80% of the market, are expected to strengthen their dominance, leveraging government policies like the e-way bill and GST. Furthermore, the less-than-truckload (LTL) segment in road transportation is also anticipated to grow, with a projected 10% CAGR, driven by rising demand for smaller and more frequent shipments that bypass warehouse storage to reach retailers directly. (ET)

Next Story
Infrastructure Urban

TBO Tek Q2 Profit Climbs 12%, Revenue Surges 26% YoY

TBO Tek Limited one of the world’s largest travel distribution platforms, reported a solid performance for Q2 FY26 with a 26 per cent year-on-year increase in revenue to Rs 5.68 billion, reflecting broad-based growth and improving profitability.The company recorded a Gross Transaction Value (GTV) of Rs 8,901 crore, up 12 per cent YoY, driven by strong performance across Europe, MEA, and APAC regions. Adjusted EBITDA before acquisition-related costs stood at Rs 1.04 billion, up 16 per cent YoY, translating into an 18.32 per cent margin compared to 16.56 per cent in Q1 FY26. Profit after tax r..

Next Story
Infrastructure Energy

Northern Graphite, Rain Carbon Secure R&D Grant for Greener Battery Materials

Northern Graphite Corporation and Rain Carbon Canada Inc, a subsidiary of Rain Carbon Inc, have jointly received up to C$860,000 (€530,000) in funding under the Canada–Germany Collaborative Industrial Research and Development Programme to develop sustainable battery anode materials.The two-year, C$2.2 million project aims to transform natural graphite processing by-products into high-performance, battery-grade anode material (BAM). Supported by the National Research Council of Canada Industrial Research Assistance Programme (NRC IRAP) and Germany’s Federal Ministry for Economic Affairs a..

Next Story
Infrastructure Urban

Antony Waste Q2 Revenue Jumps 16%; Subsidiary Wins Rs 3,200 Cr WtE Projects

Antony Waste Handling Cell Limited (AWHCL), a leading player in India’s municipal solid waste management sector, announced a 16 per cent year-on-year increase in total operating revenue to Rs 2.33 billion for Q2 FY26. The growth was driven by higher waste volumes, escalated contracts, and strong operational execution.EBITDA rose 18 per cent to Rs 570 million, with margins steady at 21.6 per cent, while profit after tax stood at Rs 173 million, up 13 per cent YoY. Revenue from Municipal Solid Waste Collection and Transportation (MSW C&T) reached Rs 1.605 billion, and MSW Processing re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement