Indian logistics market to reach Rs 13.4 trillion by FY28

09 Oct 2024 CW Team

This expansion is driven by structural changes, technological innovations, and government initiatives focused on reducing logistics costs and enhancing infrastructure. The National Logistics Policy, introduced in September 2022, aims to optimise India’s logistics framework by increasing the share of railways in freight movement—currently at 18%—through the development of dedicated freight corridors (DFCs), along with improvements in road infrastructure and the expansion of inland waterways.

As of April 2024, DFCs are 96% complete, which is expected to significantly enhance the capacity and efficiency of rail freight and increase its share in the overall transportation mix. The government’s initiative to privatise ports has also improved infrastructure and operational efficiency at Indian ports, benefiting major operators such as Adani Ports and SEZ (APSEZ) and JSW Infrastructure.

Currently, logistics costs in India account for 14% of GDP, considerably higher than the 8-9% range found in developed nations. This disparity is largely due to an imbalanced modal mix, where road transport constitutes 71% of freight movement, while railways and waterways contribute much less. To address these inefficiencies, the government has rolled out significant reforms like the Goods and Services Tax (GST) and has heavily invested in road infrastructure, inland waterways, and DFCs. These efforts aim to reduce the logistics cost-to-GDP ratio to 8-9% in the coming years, aligning with global standards.

The logistics market is highly diversified, encompassing road transport, rail transport, air cargo, multimodal logistics, and industrial warehousing. The domestic express logistics segment is anticipated to grow even faster, with a projected CAGR of 14% from FY23 to FY28, largely fueled by the expansion of e-commerce.

Organised players, who currently control about 80% of the market, are expected to strengthen their position by leveraging government policies like the e-way bill and GST. Additionally, the less-than-truckload (LTL) segment in road transportation is forecasted to experience significant growth, with a projected CAGR of 10%, driven by the rising demand for smaller and more frequent shipments that bypass warehouse storage and reach retailers directly. (ET)

The Indian logistics market, valued at Rs 9 trillion in FY23, is forecasted to grow to Rs 13.4 trillion by FY28, achieving a compounded annual growth rate (CAGR) of 8-9%, according to a report by Motilal Oswal. This expansion is driven by structural changes, technological innovations, and government initiatives focused on reducing logistics costs and enhancing infrastructure. The National Logistics Policy, introduced in September 2022, aims to optimise India’s logistics framework by increasing the share of railways in freight movement—currently at 18%—through the development of dedicated freight corridors (DFCs), along with improvements in road infrastructure and the expansion of inland waterways. As of April 2024, DFCs are 96% complete, which is expected to significantly enhance the capacity and efficiency of rail freight and increase its share in the overall transportation mix. The government’s initiative to privatise ports has also improved infrastructure and operational efficiency at Indian ports, benefiting major operators such as Adani Ports and SEZ (APSEZ) and JSW Infrastructure. Currently, logistics costs in India account for 14% of GDP, considerably higher than the 8-9% range found in developed nations. This disparity is largely due to an imbalanced modal mix, where road transport constitutes 71% of freight movement, while railways and waterways contribute much less. To address these inefficiencies, the government has rolled out significant reforms like the Goods and Services Tax (GST) and has heavily invested in road infrastructure, inland waterways, and DFCs. These efforts aim to reduce the logistics cost-to-GDP ratio to 8-9% in the coming years, aligning with global standards. The logistics market is highly diversified, encompassing road transport, rail transport, air cargo, multimodal logistics, and industrial warehousing. The domestic express logistics segment is anticipated to grow even faster, with a projected CAGR of 14% from FY23 to FY28, largely fueled by the expansion of e-commerce. Organised players, who currently control about 80% of the market, are expected to strengthen their position by leveraging government policies like the e-way bill and GST. Additionally, the less-than-truckload (LTL) segment in road transportation is forecasted to experience significant growth, with a projected CAGR of 10%, driven by the rising demand for smaller and more frequent shipments that bypass warehouse storage and reach retailers directly. (ET)

Infrastructure Transport

01 Jun 2026

MMRDA advances 250 m on Orange Gate–Marine Drive tunnel

The Mumbai Metropolitan Region Development Authority (MMRDA) has completed 250 m of underground tunnelling for the Orange Gate–Marine Drive Urban Road Tunnel using India’s largest slurry shield tunnel boring machine (TBM) deployed for an urban road project.The project involves twin tunnels extending over 7 km beneath critical transport corridors, including Central Railway, Western Railway and Metro Line 3. The work requires high-precision engineering to navigate densely developed urban infrastructure.Once completed, the tunnel is expected to reduce travel time between Orange Gate and Marin..

Infrastructure Urban

01 Jun 2026

Hindustan Zinc Pays Rs 188.46 Billion in FY26

Hindustan Zinc contributed Rs 188.46 billion to the public exchequer in FY 2025-26, according to its 9th Tax Transparency Report. The contribution, equivalent to 46 per cent of the company’s revenue, included direct and indirect taxes, government royalties, dividends to the Government of India, withholding taxes and other statutory levies.The company’s five-year cumulative contribution to the exchequer stood at Rs 915.72 billion. In FY26, Hindustan Zinc reported revenue of Rs 408.44 billion, EBITDA of Rs 221.62 billion and profit after tax of Rs 138.32 billion. It also achieved its highest..

Infrastructure Urban

01 Jun 2026

World of Concrete India 2026 Opens in Mumbai

Informa Markets in India will host the 12th edition of World of Concrete India 2026 from 3–5 June 2026 at the Bombay Exhibition Centre, Mumbai. The specialised B2B exhibition will bring together manufacturers, suppliers, contractors, developers, architects, consultants, infrastructure companies, project leaders and government stakeholders.The event is expected to feature over 350 brands and more than 18,000 trade professionals. It will cover concrete and cement, dry mortar, precast technologies, formwork, construction chemicals, industrial and commercial flooring, scaffolding, safety solutio..