+
Tech-Enabled Logistics Cut Intra-City Costs for MSMEs
WAREHOUSING & LOGISTICS

Tech-Enabled Logistics Cut Intra-City Costs for MSMEs

A recent study by the Centre for Digital Economy Policy Research (C-DEP), conducted in collaboration with IIT Delhi, highlights the role of technology-enabled goods transportation services in reducing intra-city logistics costs and improving efficiency for MSMEs. The report was released in New Delhi and examines how digital platforms are becoming integral to daily MSME operations.

MSMEs, which contribute nearly 30 per cent of India’s GDP and 45 per cent of industrial output, continue to face challenges such as high transport costs, unreliable vehicle availability and delivery delays. Based on interviews and aggregated service-provider data, the study finds that tech-enabled logistics has emerged as a key enabler, improving reliability and turnaround time.

Speaking at the release, Praveen Khandelwal emphasised that lowering logistics costs is central to India’s development ambitions, particularly in road-based and intra-city transport. Ashwini Mahajan highlighted how technology adoption has strengthened MSMEs’ capabilities across sectors, reinforcing India’s growing digital ecosystem.

Key findings show that business users account for around 71 per cent of users on tech-enabled transport platforms and nearly 97 per cent of total orders. Among surveyed MSMEs, 73 per cent reported lower transport costs, 95 per cent saw improved on-time deliveries, and about 27 per cent expanded their customer reach.

The report also flags policy risks, warning that potential GST reclassification could raise logistics costs significantly, undermining efficiency gains. It recommends regulatory clarity, gradual formalisation of informal transport operators and targeted policy support to ensure affordable, sustainable logistics for MSMEs.

A recent study by the Centre for Digital Economy Policy Research (C-DEP), conducted in collaboration with IIT Delhi, highlights the role of technology-enabled goods transportation services in reducing intra-city logistics costs and improving efficiency for MSMEs. The report was released in New Delhi and examines how digital platforms are becoming integral to daily MSME operations. MSMEs, which contribute nearly 30 per cent of India’s GDP and 45 per cent of industrial output, continue to face challenges such as high transport costs, unreliable vehicle availability and delivery delays. Based on interviews and aggregated service-provider data, the study finds that tech-enabled logistics has emerged as a key enabler, improving reliability and turnaround time. Speaking at the release, Praveen Khandelwal emphasised that lowering logistics costs is central to India’s development ambitions, particularly in road-based and intra-city transport. Ashwini Mahajan highlighted how technology adoption has strengthened MSMEs’ capabilities across sectors, reinforcing India’s growing digital ecosystem. Key findings show that business users account for around 71 per cent of users on tech-enabled transport platforms and nearly 97 per cent of total orders. Among surveyed MSMEs, 73 per cent reported lower transport costs, 95 per cent saw improved on-time deliveries, and about 27 per cent expanded their customer reach. The report also flags policy risks, warning that potential GST reclassification could raise logistics costs significantly, undermining efficiency gains. It recommends regulatory clarity, gradual formalisation of informal transport operators and targeted policy support to ensure affordable, sustainable logistics for MSMEs.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code