India's logistics cost estimated at 7.8-8.9% of GDP in 2021-22

20 Dec 2023 CW Team

In the fiscal year 2021-22, India's logistics cost has been determined to be in the range of 7.8-8.9% of the gross domestic product (GDP), which is lower than previous private survey estimates exceeding 10%. The National Council of Applied Economic Research (NCAER) conducted this calculation as assigned by the Department for Promotion of Industry and Internal Trade (DPIIT). The World Bank has reviewed the methodology and recognised its appropriateness as a baseline, with the potential for future fine-tuning, according to government officials.

The logistics cost encompasses various components such as transportation, warehousing, storage, auxiliary support services, packaging, insurance, and other operational costs. DPIIT Secretary Rajesh Kumar Singh introduced the report titled "Logistics Cost in India: Assessment and Long-Term Framework," emphasising its pivotal role in optimising logistics efficiencies and enhancing India's global competitiveness. Singh highlighted the ongoing investments in physical and digital infrastructure, creating an enabling environment for obtaining reliable data for data-driven planning and policymaking.

Poonam Munjal, a professor at NCAER, described the calculation as a quick estimate and expressed the intention to refine the numbers further using more granular data. The government, currently relying on certain estimates, suggests that India's logistics cost is at 13-14% of GDP. The report aims to establish a credible framework for logistics cost estimates, capturing detailed data on an origin-destination (O-D) pair-wise, commodity-wise, and geography-wise basis.

DPIIT Special Secretary Sumita Dawra emphasised the serious implications of logistics cost on the country's manufacturing sector, export competitiveness, and global positioning. The government's effort is to move away from past estimates lacking a conclusive and scientific calculation framework and focus on a more data-driven approach for effective policymaking.

Infrastructure Transport

16 Sep 2025

Metro Line 2B Phase 1 to Boost Realty in Mumbai’s Eastern Suburbs

Mumbai’s real estate sector is set for a major boost as Phase 1 of Metro Line 2B, between Mandale and Diamond Garden, nears completion. The Mumbai Metropolitan Region Development Authority (MMRDA) has confirmed that mandatory rectifications are done, and inspections by the Commissioner of Metro Railway Safety (CMRS) have been carried out. The 5.39-km stretch with five stations forms part of the larger DN Nagar–Mandale corridor, designed to ease congestion and improve east–west connectivity. Passenger operations are expected by December 2025, with the full line slated for 2027. ..

WattPower wins Best Inverter award at Global Solar Expo 2025

WattPower, a leading renewable energy solutions provider, has won the award for “Best Inverter in the Utility Segment” at the Global Solar Expo 2025. The recognition underscores the company’s commitment to delivering reliable, high-performance and future-ready solar solutions for large-scale projects. At the forefront of utility-scale solar, WattPower manufactures advanced string inverters that directly feed power into the Indian grid. With robust technology, high-quality components and comprehensive product lifecycle support, its solutions stand among the most sophisticated in the ..

Awfis delivers 67,000 sq. ft. innovation hub for eBay in Bengaluru

Awfis Space Solutions, India’s largest flexible workspace provider and the first publicly listed workspace solutions platform, has partnered with eBay to establish a 67,000 sq. ft. innovation hub at Embassy Tech Village, Bengaluru. The mandate covers design, build and management of the new office, which will act as a strategic hub supporting diverse functions and accelerating eBay’s AI-first commerce strategy. The centre will focus on artificial intelligence, engineering, product development and applied research, strengthening eBay’s growth in India. Embassy Tech Village, North Beng..